XLM Flashes Death Cross – Can Bulls Survive This Crash?

XLM fell to $0.28 amidst a sharp drop in volume and open interest. A death cross has occurred, signaling a short-term bearish trend and weakening momentum. Bulls must reclaim $0.29 or risk a deeper fall to the $0.2653 support level.

Stellar (XLM)#XLM has stumbled on a key signal – and bulls are waiting with bated breath. After hitting $0.33 two weeks ago, XLM quickly lost momentum. It didn’t stumble – it fell all the way. Currently, XLM is sitting around $0.28, and traders are feeling the weight of a pattern no one wants to see. The death cross has arrived, and the tone has turned cold. Will bulls recover before things get worse, or has the crash already begun?

Signals Turn Bearish

The price of XLM fell 1.67% in a single day to $0.28. The drop was accompanied by weakness in both the spot and derivatives markets. Daily trading volume plunged 62.7% to $97 million. Open interest also slipped 6.6% to $160 million. This clearly shows - traders are decreasing. Less participation means less confidence. Speculators and investors have lost enthusiasm. Analyst Ali Martinez noted that XLM could be exiting the ascending channel.

Such an exit usually marks the end of a trend and hints at further declines. The spot market added fuel to the fire. Sellers dumped 21.95 million tokens, while buyers bought only 21.64 million. The difference between the two, 313,200 XLM, formed a negative Delta value. This number may seem small, but in such a narrow range, every number is crucial. The selling pressure is not only strong, but also dominant.

The most worrying signal is the formation of a death cross. The 9-day DSMA just fell below the 21-day DSMA. This signal has historically signaled short-term pain. The market is currently trading below both lines. Unless bulls quickly reclaim $0.291, this price is now acting like a wall. A daily close below $0.28 will attract more sellers.

If this happens, the $0.2653 support level will become the last line of defense. A break below this level could trigger panic.