Stellar (XLM) Forms Death Cross Amid Market Sell-Off, Bearish Trend Ahead?

Stellar (XLM) has triggered a major bearish signal with a death cross on its daily chart—the first in 2025. This technical pattern, where the 50-day simple moving average (SMA) crosses below the 200-day SMA, is widely viewed as a sign of potential long-term downward momentum. Historically, such formations often precede extended declines, especially when accompanied by weak price action and negative market sentiment.

XLM has dropped 6.33% in the last 24 hours to $0.23 and is down 16% weekly, reflecting the broader market downturn. Bitcoin, Ethereum, XRP, and Solana have also seen sharp declines, driven by a mix of macroeconomic uncertainty, rising liquidations, and fading investor confidence.

This marks the first death cross on Stellar’s chart since mid-2024, raising concerns that the recent slide may signal a deeper trend shift rather than a short-term correction. However, while a death cross suggests bearish pressure, it doesn’t guarantee a prolonged bear market.

XLM rebounded from an intraday low of $0.20, briefly reaching $0.239. A continued recovery could see it challenge resistance at the 50- and 200-day SMAs near $0.284 and $0.287. A successful breakout might pave the way toward $0.375 and $0.443. Conversely, failure to hold gains could push XLM back toward $0.20 or even $0.10 if selling intensifies.

With the Relative Strength Index (RSI) bouncing from oversold levels, a short-term relief rally is possible. Still, traders should stay cautious, as the death cross underscores rising downside risks amid uncertain market conditions. Stellar’s next move will likely depend on broader crypto sentiment and its ability to reclaim key technical levels.