Usman Salis
Stellar (XLM) is trading at $0.39, but technical charts are flashing danger signals that could trigger a significant selloff.
The 2-hour chart just formed a death cross pattern while exchange flows turned bearish – a combo that typically spells trouble for crypto prices.
XLM Price Forms Bearish Death Cross
The 20-period EMA crossed below the 50-period EMA on shorter timeframes, creating what traders call a "death crossover." This usually means sellers are gaining control and momentum is shifting downward.
XLM is already down 5.27% in 24 hours and 6.4% this week at $0.393. When technical breakdowns happen during weak markets, selling pressure often accelerates.
Stellar (XLM) Exchange Flows Turn Negative
For weeks, exchange netflows were slightly negative (bullish sign). This week they flipped positive, meaning more tokens are flowing into exchanges. When holders move XLM back to exchanges, they're usually preparing to sell.
This shift from negative to positive flows, combined with the death cross formation, creates a setup that could push Stellar much lower.
XLM Outlook: More Downside Likely
The combination of bearish technicals and changing exchange flows suggests Stellar could drop significantly. While XLM remains fundamentally solid, short-term price action looks concerning.
If you're buying, wait for better support levels. The warning signs are pretty clear right now.
Usman Salis
