Stellar [XLM] Bulls Out of Breath – Will They Ever Catch Their Wind Again?

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Key Takeaways

Oh, the drama! Stellar [XLM] soared to dizzying heights, reaching a lofty $0.515 in January 2025, only to stumble and falter like a tired ballerina in need of a break. The 4-hour chart shows a bearish divergence, signaling that the market is a tad bit too eager for its own good.

Stellar, the daring adventurer of the crypto world, challenged the dizzying peak it set in mid-January 2025 at $0.515. With an audacious rally of 109.7% in a mere week, the XLM bulls were left gasping for air and had no choice but to retreat. A truly valiant effort, if not a little too optimistic. 🦸‍♂️

Despite this setback, Stellar and its crypto comrades, including Bitcoin [BTC], maintained their bullish swagger. Bitcoin was out on a wild price discovery spree, while Ethereum [ETH], the so-called “altcoin monarch,” was ready to strut its stuff and climb to new heights. According to AMBCrypto, ETH might even reach its all-time high by year’s end. Talk about a go-getter. 🙄

The weekly chart of XLM looked all too proud of itself, flaunting a firmly bullish structure. The first bullish break (orange) arrived in May, as if to announce, “Yes, I’m a star!” A higher high (green) at $0.334 followed later, and in June, XLM gave us a gift in the form of a higher low (white) at $0.216. How generous!

Last week, XLM decided to go for broke, catapulting past its earlier high of $0.334 and having a go at the $0.515 level from early 2025. Such boldness! But alas, it was met with rejection. A minor 11% pullback later, and here we are, wondering if the bulls will return for round two. The question on everyone’s lips: How deep will the dip go? 🤔

Mapping the Potential XLM Retracement

With the recent rally from $0.216 to $0.516, we’ve plotted the Fibonacci retracement levels (white) like a seasoned astrologer predicting the future. On higher timeframes, the XLM structure remains stubbornly bullish, like a cat who refuses to admit it might need a nap.

Even if the retracement were to dip as low as $0.28, the bullish weekly structure would remain intact. But really, who believes it’ll sink that far? Certainly not the optimists. 🌈

The prime suspect for the next demand zone is the February highs at $0.364. This zone is conveniently aligned with the 50% retracement level of the recent rally. Traders, mark your calendars—this is your cue to buy after a little dip. ⏳

The daily technical indicators didn’t seem to agree with the idea of an immediate pullback. The A/D line was soaring to new heights, signaling strong demand, and the CMF was humming a sweet tune of capital inflow, reading well above +0.05. A little extra cash never hurt anyone, right?

The liquidation heatmap showed pockets of liquidity waiting to be tapped. Long liquidations were spotted between $0.445 and $0.395, and there was a nice juicy cluster just above $0.51. It’s almost like a treasure hunt, only the treasure might be a little more volatile. 🎯

Traders, take note: Risk management is key. In this market, don’t expect a leisurely stroll through sideways price action. No, liquidity is the name of the game, and prices could gravitate toward nearby zones, pulled in by the magnetic forces of speculative interest. Hold on to your hats! 🎩

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2025-07-15 05:15