Stellar’s native token XLM has experienced renewed selling pressure, shedding nearly 10% over the past week. The price is currently hovering near $0.20, a critical psychological level for the asset’s short-term trend. This pullback undermines gains achieved during its September recovery phase.
XLM price falls back after failed rally
At the time of writing, XLM is trading around $0.2031, marking a decline of almost 6% in the past 24 hours. As a result, the token’s market capitalization has decreased to approximately $7.11 billion. Trading volume over the last day has also dropped by 7.52% to $202.65 million.
After reaching highs between $0.233 and $0.235 in late September, Stellar surpassed several key moving averages and hinted at a bullish continuation. However, buyers failed to push the price to new highs, leading to a shift in momentum. XLM subsequently began forming lower highs and ultimately accelerated its downtrend.
Technical support levels come under pressure
The recent decline has brought XLM below its short-term moving average, previously near $0.207. The next area of concern for bulls is a cluster of longer-term moving averages in the $0.190 to $0.197 range. This zone represents a vital foundation for the coin’s existing bullish structure.
If XLM fails to maintain the $0.20 level, the price may test support within the $0.195 to $0.190 region. Losing this area could effectively erase much of the technical progress achieved over the past month and set the stage for a move toward $0.18.
| Support Level | Status |
|---|---|
| $0.20 | Threatened |
| $0.195–$0.190 | Key cluster |
| $0.18 | Potential next target if support fails |
Bearish momentum strengthens
Momentum indicators confirm growing selling pressure. The daily relative strength index (RSI) has dropped toward the neutral 50 level, retreating from overbought territory seen during September’s rally. However, the indicator has not yet signaled an oversold condition, leaving open the possibility for further declines in the near term.
XLM remains under downside pressure, with key support at $0.20 coming into play after technical improvements earlier in September faded.
To reverse the current structure, bulls would need to push the price back above approximately $0.21. Further resistance would be encountered near $0.22 and at the recent high band between $0.233 and $0.235.
Outlook for Stellar
Founded by Joyce Kim and Jed McCaleb in 2014, Stellar is a blockchain-based platform designed to facilitate fast, low-cost cross-border payments with its XLM digital currency.
While the recent 10% decline has not wiped out the broader recovery, the momentum has clearly shifted in favor of sellers. As long as XLM trades below $0.21, bearish sentiment will likely dominate the short-term view. A loss of $0.19 would mark a significant breakdown, while climbing back above $0.22 remains key to reestablishing a convincing bullish trend.
