Stellar (XLM) is facing a critical test at the $0.28 level amid rising volatility in the broader cryptocurrency market. As of Monday, XLM is trading at $0.2830, showing a modest decline of just over 1% in the last 24 hours. The coin hovers just above a key support level at $0.27—a threshold analysts warn must hold to prevent a possible 14% correction to $0.23.
Market sentiment turned cautious after Stellar reversed from a Sunday high of $0.297. The pullback aligns with a broader market cooldown that followed weekend rallies across major cryptocurrencies. According to analyst Ali, a break below $0.27 could spark a steep downturn, with subsequent support levels seen at $0.2589 and $0.2384.
Technical indicators offer a mixed outlook. XLM recently bounced off the 0.618 Fibonacci retracement level at $0.2794, helping stabilize prices above short-term support. However, resistance looms in the $0.287–$0.29 range, where the 50-day simple moving average and Bollinger Band midline converge. A successful breakout above this zone could open the door to a retest of $0.30—a psychologically significant level for bulls.
Also Read: Stellar Lumens Surges Toward Top 20—Here’s Why XLM Could Hit $1 This Year
The broader market’s instability is adding to the pressure. According to CoinGlass, over $669 million in positions were liquidated across crypto assets in the last 24 hours, with $465 million from longs and $203 million from shorts. For XLM, most long liquidations occurred when prices briefly surpassed $0.31 before correcting, illustrating the high-risk environment.
XLM’s trading volume saw a sharp increase to $255 million before cooling to $179.75 million, marking a 33% drop. The decline suggests that traders are stepping back amid heightened uncertainty. Meanwhile, Stellar’s market cap is hovering around $8.79 billion, with a volume-to-market cap ratio of 2.04%, indicating moderate investor activity.
On the technical front, XLM remains below the 20-day moving average at $0.2872 and just above the 50-day at $0.2817. The 200-day moving average, sitting higher at $0.3247, suggests a longer-term bearish bias.
If bulls fail to defend $0.28, downside targets at $0.266 and $0.23 could come into play. Conversely, reclaiming $0.30 may reignite optimism for a bullish breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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