The drop has pushed its market capitalization down to $12.16 billion, as selling activity weighed on short-term sentiment.
The RSI is sitting near 46.59, hovering below neutral territory, while the MACD remains flat, signaling indecision among traders. On the broader chart, XLM has struggled to hold above the $0.40 mark, with repeated rejections hinting at weak momentum.
Despite the pullback, some analysts see this correction as a setup for a larger move. Crypto strategist Ali Martinez highlighted that XLM may still need “one more dip” before staging a significant breakout. His chart outlines a potential inverse head-and-shoulders pattern, a bullish technical setup that could push Stellar toward the $1 level later this year.
The recent decline comes as part of a broader market downturn, with Bitcoin slipping below $110,000 and altcoins facing parallel selling pressure. Liquidity concerns, coupled with caution ahead of macroeconomic events such as the Federal Reserve’s September meeting, have also added to investor hesitancy.
If Stellar can hold its support range around $0.36–$0.37, traders believe it could mark the bottom before a recovery phase. A decisive break above $0.42–$0.45 would be the key trigger to confirm bullish momentum and open the path toward higher levels.
For now, short-term uncertainty continues, but long-term bullish setups remain intact. Stellar’s ecosystem, focused on payments and cross-border settlements, continues to attract attention, and analysts argue that its resilience during downturns could position it for strong gains once broader market conditions improve.
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