Stellar (XLM) Drops 8.5% Amid Rising Global Trade Tensions

Stellar (XLM) is under renewed pressure as global trade concerns intensify, triggering a broader risk-off sentiment in crypto markets. According to CoinMarketCap, XLM is trading at $0.2153, marking an 8.55% drop over the past 24 hours. The latest decline adds to an already grim performance, with the token down 19.7% in the last week and over 20% in the past 30 days. Year-to-date, Stellar has plunged by 46%, wiping out gains from earlier short-lived breakouts.

The $0.21 level is now a critical support zone for XLM. If the token fails to hold above this mark, it could dip to its 30-day low of $0.2018. On the upside, a bounce from $0.21 could trigger a rally, potentially pushing XLM toward resistance at $0.25. Still, bearish momentum dominates the current trend.

In contrast, XRP appears to be benefiting from stronger investor sentiment. Prominent attorney John Deaton recently voiced optimism about XRP’s long-term potential, even suggesting it could challenge Ethereum’s position by year-end. The XRP community’s continued engagement offers a sharp contrast to XLM’s weakening momentum.

As Stellar faces potential slippage in market rankings—possibly falling behind meme coin Shiba Inu—analysts warn of further downside risk unless bullish support returns soon. Market volatility driven by macroeconomic uncertainty is expected to remain a key factor in XLM’s near-term performance.

For now, traders are watching closely to see whether Stellar can hold above the $0.21 support or if further losses will push the token to new local lows.