Stellar Price Struggles at Double Top Formation

Stellar's (XLM) price has formed a double top on several timeframes, prompting concerns among investors. The formation was identified by analyst With Gopal, who noted that the price had retested its previous high but failed to break through resistance. As a result, XLM is currently trading at $0.172, where long-term bulls will attempt to defend key support levels.

The double top formation has put XLM's bulls on the back foot, with derivatives data showing a significant deficit in liquidations for buyers. In contrast, short-sellers have incurred relatively minor losses. This trend is reflected in the Chaikin Money Flow (CMF), which stands at -0.14 on the 4-hour timeframe and indicates a bearish advantage.

The Fibonacci Retracement level of 0.618 is seen as a key decision-maker for XLM's near-term momentum. If the price breaks through this level, it could trigger a short-term rally towards the $0.19-$0.20 resistance area, which aligns with the Fibonacci 0.618 level.