Saad Ullah
Something's not right with Stellar, and if you're holding XLM, you might want to pay attention. The token just did something that has crypto traders pretty nervous – it broke below its 10-day moving average and dropped to around $0.426. That might sound like technical mumbo jumbo, but it's actually a big red flag.
Here's the deal: XLM had an amazing run in July, basically doubling from $0.25 to the $0.50 zone in less than three weeks. During that whole rally, every time the price dipped, it would bounce right off this 10-day line and keep going higher. It was like clockwork – until this week when it finally broke.
Now, Stellar gets lumped together with XRP a lot because they're both trying to do cross-border payments, but while XRP is holding up just fine, XLM is showing some serious cracks. The price action has turned messy, with those indecisive candles that basically scream "nobody knows what's happening next."
Stellar (XLM) Support Break Spells Trouble
When a crypto breaks below its 10-day moving average after a big rally like this, it's usually not good news. That line isn't just some random squiggle on a chart – it's what traders use to figure out if the momentum is still there or if things are falling apart.
During XLM's July run, that 10-day line was basically untouchable. Every pullback got bought up immediately. But once that confidence breaks – like it just did – everything changes. Suddenly, the same level that was supporting the price becomes resistance, and buyers start second-guessing themselves.
The drop to $0.426 isn't just a number. It's showing that the bulls who drove this thing from $0.25 to $0.50 are losing control. When key support levels fail, it often triggers a domino effect where stop-losses get hit and momentum traders start heading for the exits.
Stellar (XLM) Price Could Fall Much Further
Right now, XLM is in a pretty tough spot. Unless it can climb back above that 10-day moving average quickly, things could get ugly fast. The path of least resistance definitely points lower, and the next real support is probably back down near $0.25 – where this whole rally started.
Think about that for a second. We're talking about a potential 40%+ drop from current levels. That's the kind of brutal retracement you often see after parabolic moves like the one XLM had in July. What goes up fast in crypto tends to come down just as fast.
The fact that XRP is staying strong while XLM is struggling makes this even more interesting. Both tokens are in the same space, but their recent performance couldn't be more different. This suggests whatever's hitting Stellar might be specific to the project rather than some broader market problem.
For anyone holding XLM right now, this is definitely a "watch closely" moment. The technical damage is already done – that 10-day moving average break is a fact, not an opinion. Unless buyers can step up in a big way and reclaim that level, this could turn into the kind of crash that wipes out months of gains in just a few weeks.
The bottom line? XLM is walking on thin ice right now. The July rally was impressive, but crypto markets have a nasty habit of giving back gains just as quickly as they create them. With momentum clearly shifted and that key support level broken, the bears are running the show until something changes.
Saad Ullah
