Stellar traders may need to prepare for further downside pressure as new technical analysis suggests the token could retest liquidity levels near $0.325 in the coming sessions.
Analyst Crypto Patel shared a bearish setup on X, highlighting a high-probability short scenario after XLM price tapped into a 1D Fair Value Gap (FVG).
What you'll learn 👉
What the Chart Is Showing
At the time of analysis, XLM was trading around $0.359, moving within a corrective structure after rejecting resistance inside the daily FVG zone.
The rejection coincided with a sweep of buy-side liquidity (BSL), which often signals exhaustion of upward momentum.
Crypto Patel’s chart highlights the following key points:
• Entry zone: $0.3555 on MSS (market structure shift) confirmation
• Stop-loss (SL): $0.3712
• Target (TP): $0.3251, marking a liquidity draw zone
The setup is based on the assumption that XLM price rejection from the FVG, combined with the liquidity sweep, will confirm a bearish continuation once MSS forms.
XLM Price Market Structure Breakdown
The Stellar chart also shows both BSL (buy-side liquidity) and SSL (sell-side liquidity) being swept in recent moves, leaving the market vulnerable to a larger directional play.
According to Patel, the developing MSS (market structure shift) leans toward bearish continuation, giving the short setup a higher probability.
Should this play out, XLM price could see a swift move toward the $0.325 liquidity zone, aligning with prior demand levels where buyers previously stepped in.
Read Also: Polygon (POL) Price Approaches Final Migration Stage as Chart Points to 2x Rally
Stellar Price Short-Term Outlook
While the bearish bias dominates this setup, traders should keep in mind that invalidation occurs if XLM price pushes above the stop-loss level of $0.3712. That would suggest strength returning and could negate the bearish continuation pattern.
For now, however, the signals remain tilted toward downside pressure. With rejection already confirmed at the FVG zone and liquidity targets below, the risk-reward setup appears attractive for short sellers.
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