Stellar (XLM) Targets $0.10 Support as Price Slips Below Neckline Resistance

Stellar (XLM) is facing strong downside pressure as of Thursday, 05 February, extending its bearish momentum despite a largely neutral crypto market. 

XLM has been sliding steadily over the past 24 hours, dropping from near $0.169 to the $0.155 region, signaling sustained selling activity and weakening short-term sentiment.

Source: CoinMarketCap

At the time of writing, XLM is trading around $0.1548. While 24-hour trading volume has surged to $273.76 million, up nearly 50%. On a weekly basis, XLM remains sharply down, posting a decline of roughly 21.69%, with its market capitalization standing near $5.06 billion.

Also Read: XLM Price Prediction: Weekly Structure Points to $0.40 Resistance Target

XLM Faces Bearish Pressure Below Key Neckline

According to the crypto analyst CryptoPulse, as of Thursday, February 5, XLM is still under pressure as the asset is having difficulty reclaiming its neckline resistance. This is an indication of the bears’ continued control over the asset in the higher timeframes. 

The asset is having difficulty pushing past the neckline resistance, with the recent price action being a series of rejections in the zone. This is an indication of the bears selling the asset’s minor rallies.

Source: CryptoPulse X Post

As the market momentum is still on the downside, the next important level of demand is being watched by the market participants. 

If the current correction continues and the prices don’t find any support, the XLM could continue its downfall towards the important support level of the major order block near the $0.10 mark.

Stellar Shows Bearish Momentum Near Oversold Levels

The Stellar (XLM) continues to face pressure on the weekly chart on TradingView as of Thursday, 05 February. The coin has closed near the $0.154 mark after witnessing a sharp fall. 

However, the overall trend indicates that the coin has been witnessing lower highs since the end of 2024, indicating strong bearish momentum. Recent trading candles have also depicted weak buying activity for the XLM, which has been trading below the resistance levels.

Source: TradingView

The momentum indicators also support the bearish view. The MACD indicator is significantly bearish, as the signal line is below zero along with the histogram. 

This points towards considerable bearish momentum. The RSI is also close to the oversold region of 28; however, the reversal signal is still awaited.

Also Read: Stellar Network Enables First On-Chain UBI, Pushing XLM Price To $0.51