Is This The Best Time To Invest In Stellar XLM Cryptocurrency?

Stellar (XLM) has shown notable price action in recent months, particularly with a strong bullish surge at the end of December 2024. This rally created a significant demand imbalance on the monthly timeframe around the $0.104 level. Since then, Stellar XLM has been attempting to retest this zone, with many traders anticipating a potential breakout or reversal when it reaches it.

However, despite this bullish setup, April 2025 may not be the optimal time to invest in XLM. Here’s why:

XLM Has Yet to Reach the Key Demand Zone ($0.104)

The December 2024 rally left an unfilled imbalance, meaning the price could eventually return to $0.104 to establish support before another significant move. Currently, XLM is still below this level, suggesting that:

• A pullback to $0.104 could occur later in 2025, offering a better entry point.
• Buying now may mean entering before the optimal accumulation zone, which can lead to unnecessary risk.

Stellar’s Adoption Growth vs. Price Performance

While Stellar’s blockchain continues to see adoption in cross-border payments and CBDC (Central Bank Digital Currency) projects, its price has not always reflected this growth. Key factors to consider:

• Competition from Ripple (XRP) and other payment-focused cryptos could limit XLM’s upside.
• Low volatility in XLM compared to other altcoins means slower price appreciation.

Better Entry Points Likely Later in 2025

Given that XLM is still below the $0.104 demand zone, waiting for one of these scenarios could be smarter:

• A retest of $0.104 as support (confirming accumulation).
• A breakout above this level with strong volume (indicating a new uptrend).
• A deeper pullback if Bitcoin corrects further, providing a lower-risk entry.

While Stellar (XLM) has strong fundamentals and a clear technical imbalance at $0.104, April 2025 may not be the ideal time to invest. Waiting for a confirmed retest of the demand zone or a stronger bullish market structure could offer a more favorable risk-reward setup later in the year.

For now, holding cash or waiting for a clearer signal may be the best strategy before committing to XLM.

Would you like a deeper analysis on key price levels to watch? Let me know in the comments! 🚀

Disclaimer: This is not financial advice. Always conduct your own research before investing.