Stellar’s $0.29 Plunge: Will the ’Death Cross’ Bury XLM’s Bull Run?

Stellar (XLM) just nosedived below $0.29—and now, a dreaded ’death cross’ looms. Is this the knockout punch for bulls, or just another overhyped chart pattern Wall Street would laugh at over cigars?

Technical traders are sweating as the 50-day MA threatens to cross below the 200-day. Meanwhile, retail bagholders cling to hopium like it’s a 2017 ICO whitepaper. Classic crypto.

Source: Ali on X

Analyst Ali Martinez noted this structural weakness and warned of a potential breakdown.

According to him, XLM may be exiting an ascending channel, usually a bearish sign that implies trend exhaustion.

Source: Coinalyze

Moreover, spot markets reinforced the bearish tone.

Seller dominance is clear in the spot market, with XLM sellers offloading 21.95 million tokens compared to 21.64 million bought by buyers, resulting in a negative Delta of 313.2k.

This indicates strong selling pressure.

Martinez suggested that this bearish trend could lead the altcoin to drop to $0.26.

According to AMBCrypto’s analysis, XLM flashed a ‘death cross’ on the daily chart.

Source: TradingView

The 9-day DSMA slipped below the 21-day DSMA—an often-reliable short-term bearish trigger.

With the current market prices sitting below both MAs, the downward momentum could persist unless the market reclaims a price above $0.291.

Therefore, if the current selling pressure continues in the market, strengthening downward pressure even further, the altcoin will find the next support around $0.2653.

To invalidate this bearish move, XLM needs a daily close above $0.29. If bulls fail to push the altcoin above this level, we could see XLM make more losses.