Stellar’s native token, XLM, is facing strong bearish pressure, signaling a potential price decline. After experiencing impressive upside momentum at the start of March 2025, XLM has formed a bearish rising wedge pattern on the four-hour timeframe, a technical structure that often precedes price drops.
Currently, XLM is at a crucial support level of $0.288. If the token closes a four-hour candle below this mark, analysts predict a further 15% decline, potentially driving the price down to $0.23. This downward pressure is intensified by a descending trendline that has historically led to price reversals, along with the recent formation of a bearish engulfing candlestick pattern.
Market Momentum and Trading Activity
At press time, XLM is trading near $0.288, marking a 2% decline over the past 24 hours. However, trading volume has surged by 25%, suggesting increased activity among traders and investors. Despite the price downturn, this rise in volume indicates heightened market participation, which could lead to further volatility in the coming days.
Whale Activity and On-Chain Metrics Indicate Bearish Sentiment
On-chain data reinforces the bearish outlook for XLM. Analytics firm Coinglass reports that whales and long-term holders have been offloading significant amounts of XLM, adding selling pressure to the asset.
Over the past 24 hours, exchanges have seen an inflow of $1.40 million worth of XLM, a move often associated with sell-offs. Additionally, traders are heavily positioned on the bearish side, as data reveals $3.30 million worth of short positions at $0.305 and $611K in long positions at $0.286, both nearing liquidation levels.
Outlook: Bears in Control
With bearish technical indicators aligning with on-chain metrics, XLM remains under pressure. If sellers continue to dominate, the token could see further declines toward $0.23 in the near future. Traders and investors should closely monitor price action and key support levels to assess potential trading opportunities amid the prevailing downtrend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Stellar Lumens (XLM) at a Pivotal Moment: Will $0.2750 Hold or Break?
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