Stellar (XLM) Price Prediction: Bulls Lose Momentum and Are Forced to Retreat, Will the Bullish Momentum Weaken and Retrace?

Stellar (XLM) is currently reported at 0.4464 USD in the Asian afternoon session today (15). The Token once challenged the high of 0.515 USD set in mid-January of this year. However, after a significant pump of 109.7% in just one week, XLM long positions have lost momentum and have been forced to retreat.

Like other parts of the cryptocurrency market, the price of XLM remains bullish as Bitcoin is in a phase of discovering new price levels and demonstrating strong buying power.

(Source: Trading View)

Ethereum (ETH) is expected to continue its bullish momentum, and the structural divergence of this altcoin may push its price back to an all-time high (ATH) before the end of the year.

The weekly chart of XLM shows a solid bullish structure. The first bullish structure breakout (orange) occurred in May. Later that month, a higher high (green) was reached at $0.334; in June, a higher low (white) was established at $0.216.

The trading activity over the past week has driven XLM to strongly break through the $0.334 mark, approaching the $0.515 level set for early 2025.

This is clearly a signal of strong buying pressure; however, the price was rejected, resulting in a decline of over 11% as of the time of writing. This may lead to further retracement of XLM. So, how significant will this correction be?

XLM Price Analysis

Based on the recent price increase from $0.216 to $0.516, a series of Fibonacci retracement levels (in white) can be identified on the chart. Over a larger time frame, the price structure of XLM still appears clearly bullish.

Even if the price retraces significantly to $0.28, the bullish structure on the weekly chart remains intact. However, such a large drop seems unlikely.

The next area that may become a demand zone is the February high of $0.364. This area also coincides with the 50% retracement level of the recent bounce. Therefore, traders may wait for the price to pull back to this zone before buying.

Technical indicators on the daily timeframe have not shown any immediate signs of correction.

The Accumulation/Distribution (A/D) indicator has risen significantly and reached a new high, reflecting strong buying demand in recent days.

The Chaikin Money Flow (CMF) indicator also records a very positive market cash inflow, with its value far exceeding the +0.05 mark.

The liquidation chart shows that there are "liquidity pockets" in the lower area (i.e., the area with lower prices). Long positions facing liquidation risk are between $0.445 and $0.395. Above, a liquidity cluster has formed above $0.51.

Traders need to carefully manage risk and understand that the possibility of a long-term sideways consolidation under current market conditions is low.

On the contrary, liquidity will play a key role, and prices can quickly move towards nearby "attraction zones" without much lateral volatility, as the level of speculation during this period is extremely high.

(Source: Trading View)