Technical analysis from crypto trader GainMuse reveals that Stellar (XLM) has suffered a decisive shift in its market structure, with sellers now firmly in control. The XLM/USDT pair has broken below a crucial ascending support level that had previously held through multiple compression phases and triangle formations.
Price is currently trading around $0.159, following a sharp selloff that accelerated once the rising support gave way. Each prior recovery attempt within these structures failed beneath descending resistance, reinforcing the view that sellers maintained control throughout the decline. The inability to reclaim the former structure suggests the breakdown has been accepted by the market.
As long as XLM remains below the former support zone near $0.17–$0.18, downside pressure is expected to dominate. The chart shows Stellar attempting to stabilize after printing a local low near $0.145 earlier in February. However, the subsequent bounce lacks momentum and remains capped below prior breakdown zones.
Volume spikes during the selloff indicate strong seller participation, while the consolidation near $0.16 reflects market hesitation rather than accumulation. GainMuse's assessment concludes that the trend remains pressured while price trades below the reclaimed structure. If sellers maintain control, the chart suggests a downside continuation risk toward a target zone below $0.15.
From a structural standpoint, Stellar is no longer in a neutral compression phase. The loss of ascending support changes the market context entirely, placing the burden on buyers to prove strength. Until price decisively reclaims the broken structure, the broader bias remains defensive, with any rallies viewed as corrective rather than trend-changing.
