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Amidst a broader cryptocurrency market downturn, analysts are scrutinizing various assets to predict future price movements. Stellar (XLM), currently trading at $0.276 after an 8% drop in the last 24 hours, faces a significant hurdle. The $0.55 price point has acted as stubborn resistance since 2018.

Crypto analyst Ali highlights the $0.55 level as a major resistance barrier for Stellar (XLM), a key level that has persisted since 2018.

Stellar $XLM faces a major resistance barrier at $0.55, a key level that has held strong since 2018! pic.twitter.com/qGB2uKFfck— Ali (@ali_charts) March 8, 2025

These sell walls present challenges to price rallies, as the psychological and historical significance of the $0.55 level requires substantial accumulation by large holders or powerful market catalysts to overcome. XLM's attempt at a resurgence in early December 2024 was met with selling at this precise level, leading to a period of range-bound trading.

Following a loss of the daily SMA 50 at $0.351 in late January, XLM fell to the lower end of this range and is currently trading between its daily 50 and 200 moving averages, at $0.355 and $0.26 respectively.

Broader Crypto Market Sell-Off

The cryptocurrency market experienced a significant sell-off on Saturday. Bitcoin (BTC) dipped below $86,000, fueled by macroeconomic concerns and the lack of major announcements from Friday's anticipated Crypto Summit. Bitcoin fell 3.38% in early Saturday trading, marking its second consecutive day of decline. Altcoins suffered even steeper losses, with nearly all top 100 cryptocurrencies (excluding stablecoins) experiencing declines.

Ethereum (ETH) traded near $2,128, down 2.95%; XRP, similar to XLM, fell 8%; while Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Chainlink (LINK) all saw losses ranging from 4% to 10%.

CoinGlass data reveals that these declines resulted in approximately $493 million in liquidations of leveraged derivative trading positions across all crypto assets. This included $317 million in liquidated long positions and $154 million in liquidated short positions. Read original article on U.Today