Cryptocurrencies faced yet another tough day following an underwhelming weekend, where anticipated high-level negotiations failed to materialize and a significant Kelp DAO hack further dampened sentiment. With major moves expected on Monday, attention again turns to Donald Trump, who has a habit of making market-moving headlines as the week begins. Despite many of his announcements about Iran later being denied by Iranian officials, Trump continues this strategy as traders brace for volatility.
Volatility ahead as markets await Trump and key negotiations
Since the start of the Iran conflict, it’s become routine for Trump to release significant statements aimed at boosting the markets as a new week opens. Investors are expecting more of the same, with a spike in activity likely when US markets open—potentially followed by a quick reversal. If Trump fails to make a major announcement, however, selling pressure could intensify as optimism fades.
The first three days of the new week will be crucial, as a second round of talks aimed at extending negotiations is set for Monday. In short, volatility looks inevitable in the coming days—not just a possibility, but a certainty. The big question is which direction the markets will take.
Stellar (XLM) eyes breakout after months in a price channel
Crypto analyst Martinez has set his sights on XLM, pointing out that $0.179 has been the pivotal resistance level since February. He highlights the tight price channel that has trapped XLM for months—a pattern seen across many altcoins, with similar movement echoed on the heels of Bitcoin‘s volatility last Friday. Nevertheless, as trading volumes decline and appetite for risk drops, upward breakouts have so far failed to take hold.
Martinez argues that traders looking to short XLM toward $0.147 might be misreading the situation this time, given how often resistance has been tested. He notes that years-long conflicts like the one between the US and Iran rarely last forever, so even amid official denials, it’s conceivable that this could be the week markets finally break out and overcome resistance levels.
“Stellar has been trading in a clear channel since February. For months, the story has been the same: a rejection at $0.179, followed by a pullback to the $0.147 support.
We are now approaching the $0.179 resistance yet again. Historically, this level has been a ‘sell’ zone, but this is now the fourth consecutive retest. In technical analysis, the more often a level is tested, the weaker it gets. I’m watching for a daily close above $0.179. A clear break here would signal that selling pressure at the ceiling has finally been exhausted, and that could spark a 20% move to $0.22.”
Should selling accelerate, XLM may head down, while renewed risk appetite could push the price higher if it breaks the key resistance. In the days ahead, all eyes will be on whether XLM reaches either the $0.147 support or the $0.22 upside target.
