In the ongoing market uncertainty, Stellar’s native token, XLM, appears bearish and is poised for a price decline due to the bearish price action it has formed on the four-hour timeframe. At the beginning of March 2025, XLM experienced impressive upside momentum, but it later formed a bearish rising wedge pattern.
According to expert technical analysis, the asset is currently experiencing a price decline and is at a crucial support level. Based on recent price action and historical patterns, if XLM fails to hold the $0.288 level and closes a 4-hour candle below it, the price could decline by 15% to reach the $0.23 level in the coming days.
In addition to this bearish pattern, XLM’s price began falling after hitting a descending trendline with a strong history of price reversals. However, the asset has formed a bearish engulfing candlestick pattern, which is pushing XLM’s price lower.
At press time, XLM is trading near $0.288 and has recorded a 2% price drop in the past 24 hours. Despite the decline, its trading volume has spiked by 25%, indicating increased participation from traders and investors compared to previous days.
This bearish price action has been further reinforced by recent activity from whales and long-term holders, as reported by the on-chain analytics firm Coinglass.
Data from spot inflow/outflow reveals that exchanges have witnessed an inflow of over $1.40 million worth of XLM tokens in the past 24 hours, suggesting a potential sell-off by these holders, which could lead to a price decline in the future.
In addition to the activity of long-term holders, traders are also following the bearish market sentiment, as they are strongly betting on the downside. Data shows that traders are currently over-leveraged at $0.305 on the upper side and $0.286 on the lower side, both on the verge of liquidation. At these levels, traders have built $3.30 million and $611K worth of short and long positions, respectively.
When combining all these on-chain metrics with technical analysis, it appears that bears are currently dominating, and XLM’s price could see a further decline in the coming days.
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