Can Stellar (XLM) Hold Above $0.24 or Will It Fall Further?

• Stellar (XLM) faces a continued downtrend with little sign of recovery above $0.325.
• XLM may hold a bullish scenario above $0.24, but a Death Cross could bring further declines.
• A drop below $0.24 could push XLM toward $0.188, confirming a bearish outlook.

Stellar (XLM) has been trapped in a downtrend for nearly three months, with little sign of recovery. Although there have been attempts at a price bounce, the altcoin faces significant hurdles ahead. The chances of a breakout above the key $0.33 resistance level seem increasingly low. XLM may continue to struggle, and any substantial recovery appears unlikely in the future.

XLM Bullish Scenario Possibility

In an X post on Tuesday, analyst Ali Martinez highlighted that Stellar could still remain in a bullish scenario, as long as its price stays above $0.24. Holding above this support would allow the altcoin to maintain some optimism. According to the analyst, XLM is currently trading in a descending channel, marked by support at around $0.24 and resistance near $0.33.

The price has been moving within this channel, showing a series of lower highs and lower lows since the strong rally in November 2024. The Fibonacci retracement levels also indicate critical support around $0.24. If XLM holds above these support levels, it may attempt a breakout toward the upper boundary of the channel, which could provide a potential rally if momentum picks up.

Death Cross and Bearish Outlook

However, this bullish outlook could be short-lived due to a bearish technical pattern that’s starting to take shape. A looming Death Cross could lead to further challenges for the cryptocurrency.

The Death Cross is a key technical signal that traders closely watch. It occurs when the 50-day Exponential Moving Average (EMA) crosses below the 200-day EMA. For Stellar, this would mark the second Death Cross, with the first having occurred in April 2024. This pattern suggests that more selling pressure could be on the way, leading to further downward momentum for XLM.

Source: TradingView

This crossover normally acts as a warning indicating that the market sentiment will be bearish, wherein the price of XLM will find it challenging to rise above $0.30 in the future. 

Related: Ripple (XRP) Breakdown Ahead? Key Support Levels to Watch

As of press time, XLM is trading at $0.268, showing a 1.30% decline over the past day. If the price stays below $0.299, it will be possible to continue a decline in the price. Any price below $0.24 may take XLM to $0.0,188 or even lower. Such formation of the Death Cross could lead to increased selling to support the bearish sentiment concerning Stellar. 

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