Stellar’s native token, XLM, is currently facing a bearish outlook in the midst of market uncertainty. The price action on the four-hour timeframe indicates a potential decline in price due to the formation of a bearish rising wedge pattern. Although XLM showed strong upside momentum at the beginning of March 2025, it has since experienced a reversal in trend.
Technical analysis experts suggest that XLM is currently testing a critical support level at $0.288. If the token fails to hold this level and closes a 4-hour candle below it, there is a possibility of a 15% decline with the price potentially reaching $0.23 in the near future. Additionally, XLM encountered resistance at a descending trendline, which has historically led to price reversals. The formation of a bearish engulfing candlestick pattern further indicates downward pressure on XLM’s price.
As of now, XLM is trading near $0.288 with a 2% decrease in price over the past 24 hours. Despite the decline, trading volume has increased by 25%, signaling heightened interest from traders and investors.
On-chain metrics from Coinglass reveal bearish activity among whales and long-term holders. Exchanges have seen an inflow of over $1.40 million worth of XLM tokens, suggesting a potential sell-off by holders. Additionally, traders are heavily betting on the downside, with $3.30 million worth of short positions at $0.305 and $611K worth of long positions at $0.286. These levels are approaching liquidation points, indicating a strong bearish sentiment in the market.
Combining technical analysis with on-chain metrics, it is evident that bears are currently in control of XLM’s price trajectory. The outlook for XLM suggests a further decline in price in the coming days. Traders and investors should exercise caution and closely monitor price movements to make informed decisions in this volatile market.