Stellar (XLM) Eyes Recovery Amid Market Volatility

Stellar (XLM) is showing modest recovery signs after a two-day decline, currently up 1.01% in the last 24 hours and trading at $0.27. Despite this slight rebound, XLM's price remains below the 50-day simple moving average (SMA), now at $0.297, signaling ongoing bearish pressure.

XLM hit a multi-year high of $0.638 in November 2024, but bullish momentum faded in January 2025 after facing resistance at $0.51. Since then, the price has trended downward, slipping below key technical levels. March trading was largely sideways, with XLM fluctuating between the 50-day SMA at $0.297 and the 200-day SMA at $0.28. Though the token briefly dropped below this range mid-month, it quickly bounced back.

Friday’s hotter-than-expected inflation data triggered a broader crypto sell-off, pushing XLM to lows of $0.269. The decline extended to $0.261 on Saturday before rebounding. This leaves traders questioning whether the latest bounce is a true recovery or a dead cat bounce—a temporary rally before further losses.

Currently, XLM must reclaim the 200-day SMA at $0.28 to re-enter its prior range and avoid deeper declines. A sustained move above the 50-day SMA at $0.297 could signal bullish momentum, with potential upside targets at $0.375 and $0.514.

Market sentiment remains tied to macroeconomic factors, as no major XLM-specific catalysts are in play. Broader crypto trends and increased buying pressure may influence the token's next direction. For now, XLM appears poised for a consolidation phase before its next major move.