• Stellar (XLM) has reversed its recent gains, plunging from $0.301 to $0.2661 amid heightened market volatility.
• Stellar’s bullish momentum has stalled, but investors are watching key support levels for signs of a potential rebound.

Stellar (XLM) has been on a rollercoaster ride, recently reversing its gains and succumbing to bearish pressure. The cryptocurrency, known for its low-cost cross-border payments and often compared to XRP, has seen a sharp decline, leaving investors wondering: is this a temporary setback or the start of a prolonged downturn?

Stellar Faces Sharp Decline Amid Volatility

Over the last 24 hours, Stellar’s price has plunged from $0.301 to $0.2661, a significant drop that threatens to push it toward its 30-day low of $0.2301 if support fails to hold. Market volatility has played a crucial role in this price action, with trading volume dropping by 25.46% to $154.48 million. The fading momentum suggests that investors have pulled back, leading to uncertainty about the coin’s immediate future.

Technical Indicators Show Mixed Signals

Despite the recent downturn, XLM has demonstrated bullish tendencies in the past. The coin previously formed an ascending triangle, signaling a potential breakout. However, resistance at key levels has stalled upward movement, leaving the cryptocurrency vulnerable to sharp pullbacks. Without strong buy pressure, XLM had nowhere to go but down, erasing much of its recent progress.

Is a Rebound on the Horizon?

Interestingly, despite the ongoing decline, Stellar has outperformed XRP in terms of growth since November, boasting a 500% surge over the past five months. Many investors had anticipated the token reaching $0.40 after its recent rally, but the recent downturn has cast doubt on whether that milestone will materialize soon.

For now, market participants are watching closely to see where XLM will find support. If it stabilizes above the $0.2301 level, a potential rebound could be in play. However, if bearish pressure persists, further declines may be inevitable.

Stellar’s price action has left traders on edge, with uncertainty looming over whether the token can recover from its recent dip. While historical trends suggest resilience, the current market conditions indicate that a strong support level is crucial for XLM’s next move. Investors should keep a close eye on market developments before making any major decisions.