Stellar (XLM) Faces 2018 Resistance as Crypto Sell-Off Deepens

• Stellar XLM (XLM) lost 8% of its value during the last 24 hours. Stellar (XLM) demonstrates strong resistance at $0.55 because this position has never broken since 2018.
• Bitcoin slid below $86,000 while the entire altcoins sector experienced substantial value reductions in the market.
• The market reaction to macroeconomic factors and a suite of events led to the cancellation of $493 million leveraged derivatives trading positions.

The Stellar cryptocurrency (XLM) has suffered intensified selling force which caused its price to fall by 8% to reach $0.276 during the last 24 hours. The cryptocurrency operates against strong resistive pressure at the $0.55 mark, which has maintained its stance as a tough barrier since 2018. Market analysts indicate that institutional investor accumulation or a major market mover needs to appear for breaking through this barrier.

XLM Confronts Key Price Hurdle

Since 2018 Stellar has maintained its historical resistance at $0.55 which has become a main determinant for price movement during the last seven years. The price of XLM experienced selling pressure when it reached this level during early December 2024, which pushed it into a bounded trading pattern. 

During late January, the crypto asset gave up its $0.351 value at the 50-day simple moving average and started sliding toward its current holding range which falls between the 50-day and 200-day SMAs at $0.355 and $0.26.

Crypto Market Extends Sell-Off

Bitcoin (BTC) dropped below $86,000 as the wider cryptocurrency market suffered from deep falling prices. Crypto prices continue a downward trend after analysts examine both major economic factors and failed crypto conference expectations. Bitcoin has experienced falling prices for two straight trading days while early Saturday brings a 3.38% reduction in value.

Over the past day Ethereum (ETH) dropped to $2,128 marking a 2.95% loss and became one of the hardest hit cryptocurrencies. The price of XRP declined similarly to Stellar by dropping at an 8% rate. Solana (SOL) alongside Dogecoin (DOGE), Cardano (ADA) and Chainlink (LINK) experienced price declines between 4% and 10% in the cryptocurrency market.

Derivatives Market Sees Heavy Liquidations

The sharp market ups and downs have resulted in tremendous losses across leveraged derivatives trading positions. CoinGlass data illustrates how a total amount of $493 million worth of trading positions were automatically dissolved during this period. Long positions experienced the majority of losses that resulted in $317 million worth of liquidations. The market volatility caused short positions valued at $154 million to experience losses, besides $317 million in long positions that were wiped out.

Price movements for Stellar (XLM) are cautious due to ongoing market pressure and the cryptocurrency failing to surpass seven-year resistance barriers. Market factors will determine if XLM succeeds in strengthening its price or stays confined to its recent price boundaries.