Stellar holds steady as price remains trapped below key moving averages: weekly outlook

Traders Union
All News
Crypto News
Stellar falls 0.50% this week

Highlights

XLM remains under sustained seller pressure, trading well below key moving averages and charting a steady weekly decline.
Momentum indicators signal predominantly bearish conditions and weak trend strength, with no signs of oversold relief or bullish reversal.
The coming week is likely constrained between $0.1490 and $0.1662, with a much greater probability of sideways or downward movement than a rebound.

Derivatives short positioning and negative funding deepen bearish sentiment this week

Stellar is currently experiencing bearish sentiment in the derivatives market, influenced by negative funding rates and a rise in short positions. Technical data indicates continued pressure, with the asset remaining below key weekly moving averages and lacking structural support below current price levels. Broader market context continues to weigh on Stellar.

Technical indicators reinforce downside risk as XLM ends week at support

On the weekly chart, XLM remains decisively below its major moving averages, with the nearest resistance coming from the MA-20 at $0.1760 and no meaningful support above $0.1490. MACD signals a strong sell, while ADX suggests a weak trend with further downside potential. RSI is at 37.57 and in sell territory, Stochastic RSI is neutral, and the CCI also reflects seller control, with volatility over the period at 6.13% and the price ending at the weekly low.

Neutral to bearish outlook favored amid weak momentum and tight trading range

Over the next 7 days, XLM is likely to trade sideways within a range of $0.1490 to $0.1662, given the absence of any bullish weekly indicator signals. There is less than a 20% probability of a meaningful upward move, and bearish or neutral scenarios remain most probable. A break above $0.1662 would open the way for recovery, while a drop below $0.1490 could signal further declines.

Anton Kharitonov, analyst at Traders Union, notes that Stellar (XLM) ended the week at the lower edge of its recent range, weighed down by persistent bearish factors. He observes that technicals remain weak, with XLM staying well beneath all major weekly moving averages and lacking meaningful support above $0.1490. Negative sentiment dominates the derivatives market, as shown by increased short positions and unfavorable funding rates. Indicators such as MACD and CCI continue to signal a strong sell, and Kharitonov stresses that no bullish reversal signals have emerged. The base case is for sideways or bearish trading between $0.1490 and $0.1662 in the coming week. "Unless XLM regains strength above $0.1662, I remain highly cautious and see further downside as the most likely scenario."

Earlier, analysts noted that Stellar was navigating persistent bearish momentum, with sellers maintaining control despite network development efforts. The latest technical signals and derivatives market data reinforce this outlook, suggesting traders should closely monitor the $0.1490 support level for signs of further downside risk in the coming week.

Source of Data: XLM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.