Stellar Lumens (XLM) is witnessing a notable price correction as it struggles to reclaim the $0.35 resistance amid broader bearish market sentiment.
Despite the current correction, XLM is trading above the key support level at $0.30, established by the asset’s bullish momentum, which began in late 2024.
At press time, XLM was trading at $0.3178, down over 4%. On the weekly chart, the digital currency has plunged 3%. Over the past year, the token has remained green, surging almost 170%.
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Currently, Stellar is showing short-term bearish momentum. Its price is below the 50-day Simple Moving Average (SMA) of $0.4027 but above the 200-day SMA of $0.2393, suggesting weakness in the short term but a possible long-term uptrend.
The Relative Strength Index (RSI) is 42.10, near oversold territory, indicating limited buying interest. If XLM falls to $0.24, it may find strong support, but breaking below this level could trigger further declines. A recovery above $0.40 would shift the momentum bullish.
AI predicts XLM price
Regarding XLM’s price prediction, Finbold turned to its artificial intelligence (AI) tool to determine how the digital currency will trade in the short term, specifically on March 1.
The tool, leveraging various AI models, set an average predicted price of $0.330, reflecting a potential 2.85% increase by March 1.
Among the forecasts, Grok 2 Vision is the most bullish, expecting XLM to reach $0.380—an 18.44% upside—citing stable market sentiment and no major developments that would drastically shift the price.
Claude 3 Opus follows closely, predicting $0.340 (a 5.77% increase) based on strong bullish momentum and golden cross signals.
On the more cautious side, ChatGPT-4o forecasts $0.350 (a 2.90% upside), warning of a bearish technical setup due to a death cross formation. Meanwhile, ChatGPT-4o Mini takes a bearish stance, expecting XLM to drop to $0.250, reflecting a 22.08% decline.
As reported by Finbold, ChatGPT had previously projected that XLM is likely to trade above $1 by the end of 2025.
XLM fundamentals
XLM’s price growth will largely depend on Stellar’s fundamentals, as the network is a major blockchain payment solution with key partnerships. Stellar has existing deals with MoneyGram and Circle for cross-border payments and the Stellar Development Foundation’s collaborations with central banks.
These partnerships position XLM as a potential beneficiary of future institutional interest and a key growth driver.
Additionally, XLM may experience price gains due to its historical correlation with XRP, as the two assets have often mirrored each other’s movements. If major XRP catalysts—such as the potential approval of an XRP exchange-traded fund (ETF)—materialize, the resulting capital inflows and price surge could also positively impact XLM.
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