Stellar (XLM) Plunges After Failing to Hold onto Recent Gains

Stellar (XLM), the low-cost cross-border payment protocol and rival to XRP, has yielded to bearish pressure in the last 24 hours.

Stellar (XLM), the low-cost cross-border payment protocol and rival to XRP, has yielded to bearish pressure in the last 24 hours.

CoinMarketCap data shows that XLM has reversed the previous gains recorded within the last seven days in the crypto market. Notably, the XLM price plunged from $0.301 to $0.2661 as it experienced intense market volatility. The significant drop has severely impacted the coin, threatening to send it to its 30-day low of $0.2301 if it fails to find crucial support.

Stellar price analysis: XLM drops despite bullish technicals

Market trends suggest that XLM has been on a bullish path. Technical indicators showed the coin in an ascending triangle, signaling a potential breakout. However, it encountered resistance, and with no definitive buyups in the short term, the coin had nowhere to go but crash.

According to market indicators, investors have remained cautious about XLM in the past 24 hours. The trading volume during this time has dropped significantly by 25.46% to $154.48 million.

XLM had anticipated a bullish rally from the price breakout before investors’ pullback. However, the possibility of a quick rebound has faded, and the price is still on a downward spiral.

Interestingly, despite this volatility, XLM’s November-to-date performance outshines XRP's. XLM has seen growth above 500% in the past five months compared to XRP. In November, XLM offered more profit to investors than its rival, XRP.

Where will XLM find support?

The historical bullish performance of XLM had boosted investor confidence that the momentum might continue. Traders had anticipated that XLM would hold its momentum into April after soaring to $0.301. Some market participants looked forward to the coin retesting the $0.40 level.

As of this writing, XLM was changing hands at $0.2644, representing a 4.23% decline in the last 24 hours. Market observers are keen to see where XLM can find support to halt its rapid decline.