In recent weeks, the cryptocurrency markets have been dominated by uncertainty — and the story of Stellar (XLM) is no different. Following a month of correction in which XLM lost about 14.7 % of its value amid broadly weak market sentiment, a period of consolidation appears to have set in.
At the core of this consolidation is a tug-of-war between buyers and sellers. On the daily chart, XLM is trading within a symmetrical triangle pattern — formed by a series of lower highs and higher lows — which typically signifies that neither side clearly controls the market and that a breakout may be imminent.
This equilibrium suggests that the next strong move (up or down) is likely to come not from sheer dominance of one side, but from whichever side acts first. Because the trendlines of the triangle have only two touches each, the structure is still fragile and awaiting a trigger.
Signs of Sellers Retreating
A crucial clue favoring a bullish breakout is found in the decreasing selling pressure. According to the Wyckoff volume chart highlighted in the article, the bars representing seller activity (marked in yellow) have been steadily shrinking — indicating that sellers may be tiring.
Interestingly, this pattern appeared earlier in mid-October (October 17–18), when a similar drop in selling volume preceded a 15.1 % rally in XLM. The recurrence of this volume behaviour suggests that the same dynamic could be repeating.
If sellers are indeed stepping back and buyers begin absorbing more supply, the balance may tilt in favour of a breakout to the upside — provided external market conditions are supportive.
Key Price Levels to Watch
Technically speaking, there are critical support and resistance levels for the next phase of XLM’s price action:
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The support around $0.30 is crucial. As long as XLM holds above this level, the bullish case remains intact.
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On the upside, a move up to $0.33 (~7.8 % rise) is targeted. A further advance beyond this could open the pathway to $0.35 and $0.39.
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Conversely, if the $0.30 support fails and XLM drops below it, the next level to watch is around $0.28 — breaking below would likely invalidate the triangle and signal potential downside acceleration.
Thus, traders may wish to monitor whether the price holds above support and whether selling volume continues to fade — those two factors may determine which side wins this battle.
What This Means for Investors
For participants in the crypto space — whether speculators, traders or long-term investors — the current XLM setup offers both risk and opportunity:
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The risk: If selling suddenly resurges or a broader market downturn hits, the breakout could be to the downside.
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The opportunity: If sellers have indeed exhausted their steam and buyers step in, the breakout could mark the beginning of a larger recovery phase.
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The takeaway: The next move may happen quickly once price leaves the triangle region, so timing and risk management are key.
Final Thoughts
While the battle between buyers and sellers in XLM appears to be nearing a decisive moment, the outcome is far from guaranteed. The symmetrical triangle pattern emphasises indecision but also hints that a strong directional move is coming. With selling pressure showing signs of decline and a firm support level in place, conditions are reasonably favourable for a bullish outcome — however, market sentiment and external macro factors will still play a significant role.
As always, this article does not constitute financial advice. Investors should conduct their own research and remain mindful of the high volatility and risk inherent in cryptocurrency markets.
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