Yes - "hovering" in a fixed-wing is very much possible, and even desirable for STOL landings (very popular & competitive in the Alaskan bush scene).
It's still very much an observer-effect illusion however. The observer considers the speed in terms of groundspeed, the physics consider the speed in terms of airspeed. If the difference between the two values exceeds the stall speed of the airframe, the effect is sustainable.
