Stellar’s XLM risks a 30% drop after falling 5% to $0.43. Key support at $0.44 is critical, with heavy liquidations looming below $0.40.
Following a sharp rejection at $0.50, Stellar’s native cryptocurrency XLM XLM $0.43 24h volatility: 1.4% Market cap: $13.24 B Vol. 24h: $583.65 M , is heading south, correcting 5% today and moving to $0.43 as of press time.
Following an 80% rally over the past month, XLM is losing steam as bearish pressure builds and a potential 30% correction looms. Investors are now closely watching Stellar’s next move.
Xlm price holds above $0.45, but liquidation risk mounts
Stellar’s XLM is currently trading just above $0.45, but data from Bitget’s 30-day XLM/USDT liquidation map reveals elevated risk of downside volatility.
The map shows approximately $79.8 million in long positions compared to $42.1 million in shorts. However, there’s a large cluster of long liquidations concentrated below the $0.40 mark, as per Coinglass data.
XLM Liquidation Cluster – Source: Coinglass
An XLM price break below this level could trigger cascading forced liquidations.
According to the data, successive declines would first hit smaller pockets of long exposure, but a move beneath $0.40 could intensify selling as the dense liquidation zone amplifies pressure on the order book.
Stellar rsi levels hint at caution
The Relative Strength Index (RSI) for Stellar has been forming lower highs on the daily chart, signaling weakening momentum. This pattern mirrors the December correction, when XLM dropped over 40%.
XLM RSI Divergence: TradingView
The RSI, which gauges the strength of recent price action on the scale of 0-100, can signal weakening momentum when it declines despite steady or rising prices. This divergence often indicates an increased risk of a price pullback.
The Fibonacci retracement drawn from the $0.21 low to the $0.52 high for XLM outlines potential support zones in the event of a sell-off, with the 0.236 level at $0.44 emerging as a key area due to multiple prior support interactions.
XLM is currently holding above $0.44, but a daily close below this level would shift attention to the $0.40 mark.
A drop below $0.40 would validate the liquidation risk scenario, potentially accelerating the fall toward $0.33. A 40% decline from the recent $0.52 high, mirroring the December 2024 pattern, also projects downside below $0.33.
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