XLM to Reclaim $0.20 Level in March? Can It Regain Its Status as an XRP Rival?

▲ Stellar (XLM) / ChatGPT-generated image

Stellar (XLM) is attempting to stabilize at a key support level after enduring prolonged selling pressure, preparing for a full-scale rebound aimed at reclaiming the $0.20 level in March.

According to cryptocurrency outlet NewsBTC on February 19 (local time), XLM has halted its downtrend and is consolidating within a range between $0.16 and $0.17. Analysts assess that after multiple failed attempts to break through resistance levels, XLM has now reached a critical inflection point that could determine its price direction for March. Although bearish sentiment still dominates the derivatives market, improving technical signals suggest that buyers may regain control.

Market data shows that XLM’s funding rate has turned negative, indicating short positions are dominant, while the long/short ratio remains below 1, reflecting cautious investor sentiment. However, as activity across both spot and futures markets begins to balance out, the market appears to be shifting toward a wait-and-see approach rather than strong conviction in further declines. Some analysts have also suggested the possibility of an early accumulation phase, citing increased activity by whale investors in the futures market.

Technical indicators show that downward momentum is gradually weakening. The Relative Strength Index has rebounded from oversold territory and is hovering in the low 40s, with a move above 50 likely signaling the start of a more definitive recovery. The Moving Average Convergence Divergence indicator is also showing signs of easing negative momentum and hinting at a potential bullish reversal. Meanwhile, the fact that the price is positioned near the middle of the Bollinger Bands supports the view that the asset is building a base through sideways movement rather than forming a sharp trend.

For XLM to achieve a meaningful rebound, it must break through a strong resistance zone between $0.19 and $0.20, where a descending trendline and the 50-day moving average converge. Regarding its March outlook, analysts say that if XLM maintains support between $0.16 and $0.165, it could rise gradually toward $0.18 and eventually $0.20. However, if broader market weakness persists and the support level fails, there remains a risk of further decline toward February’s low of $0.136.

Ultimately, whether XLM recovers in March will depend on technical confirmation based on current support strength and an improvement in overall investor sentiment across the cryptocurrency market. Strong buying volume will be essential for a successful transition from stabilization to recovery. Investors are closely watching whether XLM can break key price levels in the coming month and initiate a new upward cycle.

Disclaimer: This article is provided for investment reference purposes only, and we are not responsible for any investment losses incurred based on its content. The information herein should be interpreted for informational purposes only.