Stellar (XLM) is showing modest recovery signs after a two-day decline, currently up 1.01% in the last 24 hours and trading at $0.27. Despite this slight rebound
Stellar (XLM) showed modest recovery signs on Sunday after a two-day decline. XLM is currently up 1.01% in the last 24 hours and trades at $0.27. Despite this slight rebound, XLM’s price remains below the 50-day simple moving average (SMA), now at $0.297, signaling ongoing bearish pressure.
Earlier this week, Benzinga highlighted the potential for a rebound in Stellar (XLM), focusing on a triple bottom pattern and a bullish divergence in the Relative Strength Index (RSI).
Following a multi-year high of $0.638 in November 2024, bullish momentum for Stellar (XLM) quickly fizzled out in January 2025 after encountering resistance at $0.51. Subsequently, the price trended downward, slipping below pivotal technical levels.
Throughout March, trading largely remained sideways, with XLM fluctuating between the 50-day SMA at $0.297 and the 200-day SMA at $0.28. Although the token briefly dipped below this range mid-month, it swiftly recovered. However, hotter-than-expected inflation data on Friday sparked a broader crypto sell-off, pushing XLM to lows of $0.269. This sell-off continued to $0.261 on Saturday before a rebound.
As the dust settles on the latest crypto sell-off, traders are wondering if this is a true recovery or a "dead cat bounce"—a temporary rally before further losses. A slip below the 200-day SMA at $0.28 could open the door for deeper declines, with the next crucial support level at $0.25.
On the other hand, reclaiming the 200-day SMA could help Stellar (XLM) retest the upper boundary of its prior range and avoid further declines. A sustained move above the 50-day SMA at $0.297 could signal bullish momentum, with potential upside targets at $0.375 and $0.514.
Market sentiment is closely tied to macroeconomic factors, and no major XLM-specific catalysts are in play. Broader crypto trends and increased buying pressure may influence the token's next direction. For now, XLM appears poised for a consolidation phase before its next major move.
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