Bitcoin [BTC] and Ethereum [ETH] were both down 3.0% for the day, and the wider crypto market capitalization has fallen 2.43% in the past 24 hours. This deflated market sentiment followed a longer-term trend among the crypto majors of seller-dominated price action.
For instance, Bitcoin was unable to climb back above $67k, and Ethereum bulls faced stiff opposition around the $2k round number supply zone.
Amidst this backdrop, Stellar [XLM] also faced a drawdown. The altcoin has shed 6% over the past week and was also trading below a vital support level.
Here are the price trends and key levels swing traders and investors need to keep an eye on.
The Stellar bull trend and subsequent retracement
Towards the end of May, XLM crypto had raced higher from $0.139 to $0.298. In just one week, the bulls had made a 113% move to establish a bullish swing structure.
On one hand, it was a clear structural shift. Yet, the $0.26-$0.27 supply zone from late 2025 was not convincingly cleared. An alternative interpretation is that the move towards $0.30 primarily swept liquidity above resistance before reversing.
After ranging below $0.18 for four months, the bullish breakout was followed by a deep retracement phase over the past two months.
The 78.6% Fibonacci retracement level has been breached, an early sign that further drawdown is likely.
Traders’ call to action- Wait to buy XLM crypto
On the 4-hour chart, the $0.168 low has been swept. The OBV has been flat over the past week as the price fell lower, and the MACD reflected a grim situation for the buyers.
XLM crypto needs to reclaim $0.175 to give an early sign of a bullish reversal. A continued move back above $0.183 is needed to shift the short-term bias bullishly.
Until then, traders can maintain a bearish bias.
Final Summary
- XLM remains in a retracement phase after its sharp May rally, with buyers now attempting to defend the $0.17 demand zone.
- The technical outlook remained bearish, and $0.175 and $0.183 are the resistances to be breached to shift the short-term bias bullishly once more.
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