- Stellar’s price has dropped over 6% within 24 hours, signaling increasing bearish sentiment as trading activity weakens significantly.
- A death cross pattern is forming between the 9-day and 26-day moving averages, indicating potential for further price declines.
- Stellar’s Relative Strength Index at 74.93 reflects weak price momentum, despite being technically overbought in the current market phase.
Stellar (XLM) has recorded a sharp 6.45% drop over the past 24 hours, falling to $0.4608 from a recent high of $0.493. The digital asset is showing signs of entering deeper bearish territory. This decline follows a broader market correction and a shift in investor sentiment, with Stellar now trading below the $0.47 mark.
Technical analysis shows that Stellar will be forming a death cross signal on a 3-hour time frame. This formation is formed when a short-term moving average falls below a longer-term average. Based on information provided by CoinMarketCap, both the 9-day and 26-day moving averages are approaching the $0.4680-to-$0.4684 range, which will mean a downtrend that will prove to be quite long-lasting.
Volume drop reflects falling interest
Stellar’s recent losses coincide with a notable drop in trading activity. Trading volume fell 12.43% in 24 hours, landing at $845.92 million. This decline suggests weakening interest from investors. Coupled with a falling RSI, currently at 74.93, the data points to slowing momentum for XLM. Despite being technically overbought, XLM is facing difficulty sustaining upward pressure.
The broader market correction has erased the gains XLM made earlier in the month. Stellar had briefly outpaced XRP by 5%, supported by optimism around the Stellar Core v23.0.0rc2 release. That update had initially led to an 8% price spike, driven by reduced cross-contact call costs. However, current market conditions have reversed most of those gains.
XRP also impacted but is faring better
While XRP is also under pressure from the wider market decline, its 24-hour loss of 3.47% is less severe than Stellar’s drop. Despite its earlier lead, XLM’s recent underperformance has narrowed the gap between the two assets.
The combination of a pending death cross, reduced investor interest, and declining momentum suggests further downside potential for Stellar. The asset is struggling to maintain support amid low trading activity and market-wide bearish sentiment.
