Stellar (XLM) is confronting significant bearish indicators as technical analyses reveal an imminent death cross formation, signaling weakening price momentum. The token’s 9-day moving average is positioned to cross below its 26-day average, reflecting deteriorating investor sentiment despite gains from recent network improvements.
Trading volume for XLM has contracted significantly, dropping 12.43% to approximately $845.92 million. This reduction highlights declining market participation and suggests eroding confidence among traders as broader cryptocurrency markets experience corrections.
The asset previously saw a temporary advantage against competitor XRP, outperforming it by up to 5% earlier in July following the Stellar Core v23.0.0rc2 upgrade. However, this trajectory reversed as XLM recorded a 24-hour decline of 6.45%, notably steeper than XRP’s concurrent 3.47% pullback.
Technical support levels around $0.4600 and $0.4500 present potential stabilization zones should bearish pressures continue. Meanwhile, Stellar’s elevated Relative Strength Index reading of 74.93 indicates the asset remains marginally overbought despite visibly fading bullish momentum.