A death cross has emerged on Stellar’s (XLM) technical chart as the asset’s price plunged by a massive 10% in the last 24 hours. The emergence of this signal worsens the already bearish outlook for Stellar, whose price has crashed by over 27.20% in the last 30 days.
Stellar’s bearish momentum worsens
Notably, a death cross emerges when a short-term moving average drops below a long-term moving average. Crypto investors consider the emergence of a death cross as a bearish signal for an asset they are interested in purchasing.
Stellar’s death cross signal confirms the weak momentum of the coin in the crypto market. The development further compounds things for Stellar as the broader cryptocurrency market suffered an over 5.5% decline in the last 24 hours amid geopolitical tensions in the Middle East.
CoinMarketCap data reveal that Stellar is changing hands at $0.1491, which represents a 10.05% decline in the last 24 hours. The coin dropped from an intraday peak of $0.1614 to the current market price.
Its trading volume is up by 11.05% at $125.89 million as a result of amplified selling pressure. The Relative Strength Index (RSI) of the coin is at 42.67, which confirms the bearish momentum, although it has not slipped into oversold territory.
Market observers are keen on seeing how the price reacts in the short term. If Stellar is able to stabilize at the $0.14 zone, it has a strong chance of rallying when the broader crypto volatility eases. However, if the ongoing selling pressure causes XLM to breach the $0.1380 support, the downtrend might continue.
The appearance of a death cross on Stellar’s technical chart has compounded the fears of investors in the ecosystem. If the price refuses to stabilize, it could trigger an increased outflow from the altcoin.
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Can Stellar rediscover its upside potential?
Stellar’s current outlook is a huge decline from December 2025, when the coin’s price was bullish. At the time, XLM was on the verge of a possible 33% upside and in line to give XRP a stiff competition in terms of price.
However, Stellar has not been able to keep up the momentum amid the volatility in the crypto space.
Despite the current bearish outlook, Stellar Development Foundation CEO Denelle Dixon maintains that there are real opportunities in blockchain as it concerns the world’s financial future. Dixon believes that building open networks that expand participation could be a goldmine.