XLM Price Action: Approaching Key Trendline Resistance

After an 8% surge on Tuesday, Stellar (XLM) is consolidating under trendline resistance, setting the stage for a make-or-break move.

Stellar (XLM) is at a tipping point. After an 8% surge on Tuesday, Stellar (XLM) is consolidating at a crucial inflection point.

What Happened: Stellar (XLM) is trading at approximately $0.267, down 4% today after an 8% rally on Tuesday, as increased trading volume reignited optimism among XLM holders.

The Ripple (XRP) competitor reached its lowest price in March at $0.25 on March 31 but has since been forming higher highs and higher lows, fueling hopes of a trend reversal.

Since reaching a multi-year high of $0.638 in November 2024, Stellar has been in a downtrend. Bulls attempted to reignite the uptrend in January, but resistance at $0.51 forced XLM lower. It has since been trading below the 200-day moving average (MA) at around $0.26.

However, on the daily timeframe, XLM is approaching a crucial inflection point—will it break trendline resistance, or face another rejection?

At the moment, the short-term price predictions for XLM vary.

Short-Term XLM Price Predictions: Bullish vs. Bearish Outlook

One crypto trader isn’t holding back, saying XLM could explode by 70% if the resistance level is broken.

“XLM is looking very strong here, at least in the short term. It is consolidating at least in the short term. It is consolidating stigle, and a 50-70% bullish rally is expected after a successful breakout,” says crypto trader on X.

According to this projection, if XLM breaks above trendline resistance, the price could surge to $0.40 or even $0.46.

Other analysts caution against a potential downside, at least in the short term.

One key concern is the position of the Moving Averages (MA) and the potential formation of a Death Cross. Technical analysis shows that the 50-day MA is nearing the 200-day MA, which could be a bearish signal.

If MA50 crosses below MA200, forming a Death Cross, it could trigger a 20% drop, sending XLM below its monthly low of $0.22.

In such a case, XLM could find potential support between $0.19 and $0.21.

Why This Matters: Stellar (XLM) is approaching a make-or-break moment as it pivots at a key trendline, setting the stage for a decisive move.

The direction of this move will depend on various factors, including the overall crypto market trends and the macroeconomic landscape, such as Trump’s import tariffs on cars and auto parts, announced today.