Stellar (XLM) Nears Death Cross as Bearish Momentum Builds

Stellar (XLM) has dropped 1.83% in the past 24 hours, now trading at $0.22, deepening its bearish trend. The cryptocurrency is edging closer to forming a death cross — a technical indicator that signals potential long-term weakness when the 50-day moving average (MA) drops below the 200-day MA. Currently, the gap between these two moving averages is narrowing rapidly, suggesting the death cross could occur within days.

XLM has already fallen below both its 100-day and 200-day MAs, which previously acted as dynamic support levels. These breakdowns indicate increased selling pressure and have left the asset vulnerable, with major resistance levels now sitting above the current price. If the death cross materializes, it could further undermine investor confidence and trigger additional downside.

The next key support lies around $0.20 — a critical psychological and historical level. If this support fails to hold, XLM may face further losses. However, a strong bounce could occur at this level, offering short-term relief for traders.

Technical indicators also suggest caution. The Relative Strength Index (RSI) is currently at 32, approaching the oversold zone. While this hints at a potential rebound, it also indicates that bearish momentum could persist before a true recovery sets in.

As broader market sentiment remains weak, Stellar faces a pivotal moment. Traders and investors should closely monitor upcoming price action and key technical levels. A confirmed death cross combined with a breakdown below $0.20 could accelerate the downtrend, while a strong hold at support may offer a temporary lifeline for bulls.