Stellar’s XLM Price Faces 2018 Resistance as Market Dumps $495 Million

As the broader crypto market faces renewed selling pressure, analysts are zooming out on various crypto assets to determine their price outlook.

In the case of Stellar (XLM), which is down 8% in the last 24 hours to $0.276, the bullish outlook looks to be tempered as the crypto asset faces unseen resistance dating back to 2018. The $0.55 mark has long been a pivotal resistance level for Stellar, having served as a major hurdle for nearly seven years.

According to Ali, a crypto analyst, Stellar (XLM) faces a major resistance barrier at $0.55, a key level that has held strong since 2018.

Sell walls can create hurdles for price rallies, as market participants recognize the psychological and historical significance of the level, necessitating strategic accumulation by large holders or strong market catalysts to overcome them.

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XLM’s resurgence in early December 2024 was met with selling at the $0.55 mark, after which Stellar declined to trade in a range.

Stellar fell to the lower end of this range after losing the daily SMA 50 at $0.351 in late January and is now trading between its daily moving averages of 50 and 200 at $0.355 and $0.26.

Crypto market sees sell-off

Cryptocurrencies extended their sell-off into Saturday, with Bitcoin (BTC) falling below $86,000 as traders considered macroeconomic concerns and that the much-anticipated Crypto Summit on Friday did not yield a major announcement for cryptocurrencies.

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Bitcoin is down for the second day, falling 3.38% in the early Saturday session. Altcoins experienced significantly larger declines during the same period, with practically all crypto assets in the top 100 save stablecoins in the red.

Ethereum (ETH) traded near $2,128 and was down 2.95%; XRP, like XLM, was down 8%, while Solana (SOL), Dogecoin (DOGE), Cardano’s ADA and Chainlink’s LINK all lost 4% to 10%.

The declines resulted in nearly $493 million in liquidations of leveraged derivatives trading positions across all crypto assets, according to CoinGlass data; $317 million of bullish bets were liquidated during the time frame, while $154 million of short positions were wiped out.