Crypto asset Stellar (XLM) encounters tough barriers at $0.55 amidst broad crypto market downturn.

Stellar (XLM) is feeling the heat as the wider crypto market endures a wave of selling. In the past 24 hours, XLM has dipped 8%, trading at $0.276. Analysts have pinpointed a major stumbling block at $0.55, a barrier that has persistently restricted gains since 2018, leading to multiple sell-offs.

Obstacle at $0.55

Crypto analyst Ali marked $0.55 as a key hurdle for XLM during 2018. This resistance point has repeatedly thwarted recovery attempts as sellers jump in when Stellar tries to exceed its threshold. The December 2024 attempt to break through the barrier resulted in a downward spiral, putting XLM in a consolidation pattern.

doubting_mosquito_1085After encountering rejection, Stellar lost faith at the 50-day simple moving average (SMA), which stood at $0.351. By late January, the asset had plummeted to the bottom of its range. Presently, XLM is oscillating between the 50-day and 200-day SMAs, which currently sit at $0.355 and $0.26, respectively. A decisive leap beyond these levels would likely determine the next direction for the trend.

Crypto Sell-off

The entire crypto market is experiencing declining values at the moment. Bitcoin (BTC) dropped under $86,000 as the early Saturday session started with a 3.38% market drop. ETH dipped to $2,128 before its value dipped by 2.95%. Major cryptocurrencies like XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have all experienced losses between 4% and 10% over the past period.

As market instability intensifies, geared traders have faced substantial losses. According to CoinGlass data, cumulative liquidations have surpassed $493 million across various crypto assets. The brunt had been borne by bullish traders, with $317 million in long positions being eliminated. Conversely, $154 million in short positions also faced liquidation during the downturn.

The ongoing crypto market downtrend transpired during a period when significant macroeconomic factors surfaced, while essential announcements failed to materialize at the Crypto Summit on Friday. Traders had been anticipating positive results, yet they received minimal impactful information during the event. The market continues to be uncertain, so traders have exhibited increased caution in their trading activities.

Stellar (XLM) and the Crypto Market

Resistance Levels

$0.276: A significant level that must be breached for a sustained rally.
$0.29 and $0.35: Immediate resistance levels that XLM needs to surpass for continuous growth.
$0.312126, $0.320765, and $0.325869: More precise resistance levels determined by technical analysis.
$1.29: A significant long-term resistance level. If XLM breaks free from this, it might lead to substantial price increases.

Market Conditions

Growing bullish sentiment in the crypto market driven by renewed interest in alternative cryptocurrencies, like XLM.
Technical indicators suggesting a potential for a bullish reversal, with XLM displaying higher lows and testing its descending trendline. The RSI moving above 50 signals rising purchasing strength.
Broader market conditions, including macroeconomic trends and the adoption of Stellar's technology by financial institutions, significantly impact XLM's price trajectory. Partnerships with remittance services highlight the real-world utility of the network.
Regulatory clarity and favorable policy developments are essential for boosting investor confidence in Stellar and other cryptocurrencies.
Recent whale transactions and an increase in open interest in XLM futures show strong institutional interest, which could drive price movements.

In summary, while XLM faces resistance levels, the current market trend suggests potential for a rally, provided favorable market conditions and the continued adoption of the Stellar network persist.

As XLM strives to break through the persistent resistance at $0.55, crypto analyst Ali warns that this level has repeatedly halted recovery attempts, leading to multiple sell-offs.
The ongoing crypto market sell-off has not spared XLM, with the asset experiencing a 8% dip in the past 24 hours, trading at $0.276. Major altcoins like XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have also seen declines of up to 10%.
In the face of the market downturn, traders have been affected by significant losses, with cumulative liquidations surpassing $493 million across various crypto assets. The brunt of the losses has been borne by bullish traders, with $317 million in long positions being eliminated.

Crypto asset Stellar (XLM) encounters tough barriers at $0.55 amidst broad crypto market downturn.