Stellar’s native token XLM has triggered a closely watched technical signal in its short-term chart. A death cross formed after the 50-period moving average on the two-hour chart fell below the 200-period moving average. The market is now focused on whether the price will rebound or see further declines after this formation.
Momentum fades after strong surge
This development comes on the heels of a dramatic rally that XLM experienced at the end of May. The token soared by 103 percent following reports that DTCC, a major infrastructure provider at the core of Wall Street settlements and custody, plans to expand on the Stellar blockchain.
The confirmation of a short-term death cross for XLM came as the 50-period moving average on the two-hour chart dropped below the 200-period moving average.
However, these gains proved short-lived. After reaching $0.297 on May 30, XLM pulled back, with selling pressure emerging on the short-term charts. As of press time, the token had dropped 6 percent in the past 24 hours to $0.184, bringing its weekly loss to 18 percent. Weakness across the broader crypto market ahead of key economic data contributed to the retreat.
Key support and resistance levels
As XLM declined, Stellar also slipped below the $0.188 mark, which lines up with the 200-day moving average on the daily chart. The next critical level highlighted by technical analysis is the daily 50-period moving average. If XLM fails to stay above this threshold, the price could move toward the lower band of its current trading range.
Conversely, a sustained recovery above $0.188 could open the door for XLM to test $0.21. Clearing this level may bring the $0.27 to $0.29 range back into focus for the market.
Protocol 27 update schedule clarified
Stellar developers have also shared key dates for the network’s upcoming Protocol 27 upgrade. The stable release of Stellar Core went live on June 5. The RPC and Galexie versions are expected on June 10. SDK releases are slated for between June 5 and June 11, while the Horizon update is scheduled for June 12. The protocol will roll out to the testnet on June 18, and the mainnet upgrade vote is planned for July 8.
One of the highlights of the update is the addition of delegated authentication for private accounts. Known as CAP-0071-01, this feature enables smart contract-based accounts to delegate authentication logic to another address.
Mini glossary: Delegated authentication allows an account to transfer transaction approval authority to another address under specified rules. This technical structure supports more flexible security and authorization scenarios, especially in smart contract accounts.
Push for quantum-secure architecture
Developers have also announced the Quantum Preparedness Plan, aiming to transition the Stellar network to quantum-secure cryptography. The roadmap anticipates that by the end of 2027, every Stellar account will be able to add a quantum-safe signer through a native protocol upgrade while keeping the same address and transaction history intact.
Institutional wallets are expected to adopt quantum-safe signing mechanisms via Soroban contract accounts by 2026. This timeline signals an active period for the network, with both technical updates and long-term security planning underway.
