- Stellar price had a massive 18% sell-off on January 21 as the entire crypto market collapsed.
- Bulls managed to buy the dip and pushed the digital asset above a crucial resistance level.
Stellar was trading sideways for close to two weeks before the recent sell-off. In previous articles, the potential of a massive breakout or breakdown was discussed as the Bollinger Bands were extremely squeezed.
Stellar price crashes, bulls see an opportunity to buy the dip
Although Stellar price plummeted by more than 18% in just 24 hours, from a high of $0.294 to a low of $0.227, bulls bought the dip quickly. XLM is already trading at $0.276 at the time of writing, almost gaining all back in less than 24 hours.
XLM/USD daily chart
This is certainly a major indicator that the bulls are very much alive; however, they still need to establish a few short-term uptrends. The most significant resistance point on the 4-hour chart is located at $0.29, which coincides with the 50-SMA and the 100-SMA levels. A breakout above this point would be a clear shift in momentum for the bulls with the potential to drive Stellar price up to $0.32.
XLM/USD 4-hour chart
On the other hand, a rejection from $0.29 could also lead XLM into a new leg down as there is little support below $0.30. The most significant level for the crypto to move downwards is located at $0.227.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks

Ethereum Price Forecast: ETH consolidates below $2,000 as Standard Chartered alters its prediction for 2025
Ethereum remained just below $2,000 in the Asian session on Tuesday as Standard Chartered's Global Head of Digital Assets Research, Geoffrey Kendrick, updated the bank's 2025 price forecast for ETH.

Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary
Solana (SOL) stagnated around the $128 mark on Monday despite multiple bullish catalysts. The recent SOL unlocks by Alameda Research, ahead of FTX creditor repayments, have created a persistent bearish overhang since early March.

Canary Capital proposes first-ever Sui ETF following S-1 filing with the SEC
SUI saw slight gains on Monday as Canary Capital submitted an S-1 application with the Securities & Exchange Commission (SEC) to launch a Sui exchange-traded fund (ETF). This adds to the growing list of altcoin ETF filings awaiting approvals from the regulator.

Outflows in crypto funds reach $6.4 billion over five weeks amid long-term holder accumulation
Crypto exchange-traded funds (ETFs) extended their outflow streak last week, totaling $1.7 billion, bringing the total outflows in the past 5 weeks to $6.4 billion, per CoinShares weekly report on Monday.

Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation
Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.