XLM at Critical Juncture: Technical Analysis Highlights Support Test and Macro Pressures

Stellar's XLM is trading at $0.2491, resting on a crucial upward trendline that has served as dynamic support since July, with a break or defense of this level determining the next phase of its bearish cycle. The asset has corrected approximately 52% from recent highs, and recent volume patterns indicate sustained selling pressure, likely from institutional profit-taking or reduced interest.

Technical indicators present a mixed picture: the RSI at 32 nears oversold territory, suggesting potential for a rebound, but the MACD remains negative without a bullish crossover, and the EWO shows weakening bearish momentum without a clear reversal signal. XLM also faces resistance from the 9 EMA and 50 SMA, with price action confined between support at $0.2502 and resistance at $0.2608, as an ABCD pattern completes with point D aligning on the lower trendline.

Fundamentally, the Stellar ecosystem shows progress in tokenization, real-world assets (RWA), and remittances, with applications in green financing and solar debt, but this is offset by macro pressures. Bitcoin's sharp decline to around $91,000 has spilled over into altcoins like XLM, exacerbating concerns amid Federal Reserve policy uncertainties, creating a dilemma between Stellar's utility narrative and broader market headwinds.