Stellar has been on the downtrend again, and traders are finally noticing. After a strong surge the previous week, XLM lost steam, dipping below $0.33 and posting evident signs of weakness.
The XLM chart says it all, the rally ran straight into resistance, and now momentum is fading. Between a technical rejection, weaker liquidity across altcoins, and a round of profit-taking, Stellar’s bulls have some catching up to do if they want to avoid a deeper pullback.
What you'll learn 👉
XLM Price Hit a Wall at $0.3147
The latest drop started right after XLM hit resistance at $0.3147 on October 23. That move created a double-top pattern, a textbook bearish signal that usually points to exhaustion.
After that, the XLM price fell through the 38.2% Fibonacci retracement level ($0.331), which had been acting as solid support. Once that broke, the short-term momentum flipped bearish almost instantly.
Technical indicators aren’t being of much help either at the moment. RSI is roughly 46, pointing towards momentum waning. MACD crossed slightly negative at -0.0138, confirming a weak bearish crossover.
If Stellar price will not be able to hold over $0.3027, it could drop straight to $0.29 with ease. But if it is able to recapture $0.3150, then that could be a sign that the buyers are pulling away.
Altcoin Liquidity Is Drying Up
There’s also a bigger picture here. The altcoin market in general is losing steam. Bitcoin dominance just climbed to 59.2%, meaning more money is flowing out of altcoins and back into BTC.
The Altcoin Season Index also dropped to 28, showing that traders are clearly in “risk-off” mode. And when that happens, low-volume coins like Stellar usually feel it first.
XLM trading activity has thinned out, its turnover ratio is down to 0.0209, and its price has fallen 2% in the past 24 hours. That’s actually worse than HBAR (-1.7%) and XRP (-3%), both of which faced similar selling pressure.
With liquidity drying up, even small sell-offs hit harder. It’s not necessarily panic selling, just fewer buyers around to absorb the pressure.
Traders Took Profits After the XLM Pump
It’s also worth remembering that Stellar had a solid breakout just a few days ago. On October 24, XLM price jumped 2.5% as volume spiked by over 350%. But that surge didn’t last long.
Short-term traders and institutional traders used the rally to take profit, selling around 2.9 million XLM when the pullback occurred. That sharp sale-off erased most of the gains and brought the price back to where it started.
However, all is not bearish. The overall trend since mid-October remains technically bullish, with higher lows forming on the chart. As long as the price of Stellar holds above the support level of $0.30, mid-term structure remains intact.
Outlook: Can Stellar Recover?
So, why is Stellar down today? It’s really a mix of technical rejection, weak altcoin liquidity, and short-term profit-taking after last week’s mini rally.
The bigger picture isn’t broken, but the short-term setup is fragile. The key level to watch now is $0.3150, that’s where XLM price needs to close above to rebuild bullish confidence.
If it fails to bounce soon, a drift toward $0.29 looks likely. For now, Stellar’s just caught in the same sideways pattern as most altcoins, waiting for the next big move in Bitcoin to shake things up.
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