Stellar (XLM) on the Brink: Will It Crash 14% or Rebound to $0.33?

Stellar (XLM) faces pressure near $0.27 as traders brace for a possible 14% drop or rebound toward $0.33.

Fridah Kangai
May 20, 2025
10:59 am

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

Stellar (XLM) risks a sharp 14% drop if it fails to hold the key $0.27 support level.
Bulls defend critical support as XLM slips from weekend highs amid market-wide sell-off.
Analyst warns of potential plunge to $0.23 if XLM breaks below its current price floor.

The crypto market’s instability is causing Stellar (XLM) to reach a crucial period. Prices rose quickly over the weekend, but early Monday morning, the digital asset lost momentum, leading some to think it could see a 14% drop if support breaks.

On Sunday, the price of XLM rose to $0.297 after going down for four straight days. However, the uptrend did not last, with selling leading prices to $0.2814, down 3.49% from the day before. The coin is losing 10.87% for the week, supporting the negative short-term view.

A bounce in Bitcoin started Sunday, reaching $106,000 for the first time in many months, then peaking at $107,137 on early Monday. The sharp reversal of prices led to $669 million in liquidations. Based on CoinGlass’ data, $465 million of the total long positions and $203 million from short trades.

As volatility increased, Stellar’s trading volume also increased. According to information from CoinMarketCap, XLM’s 24-hour volume increased by 88.83% to $270 million. It appears that traders are still looking for opportunities to profit by reacting to price movements.

XLM Price at Risk as Key Support Nears Breakdown

Stellar is examining whether it can support itself at a significant level that will guide its movement. According to Ali, XLM needs to remain at $0.27 or higher to prevent a bigger drop. If the asset falls below this line, it could plunge up to 14% and reach the $0.23 range.

On Monday, XLM reached a low of $0.276, but buyers quickly came in to push it back up slightly. If the Rebound goes well, a rising trend might take the stock to the key moving average of $0.323. Additionally, bulls could set their targets for the May 12 peak value of $0.334.

If the pessimism increases, the price may drop to reach the 50-day daily SMA close to $0.266. Any decrease from there may indicate the same trend and make the cost more likely to fall toward $0.23.

Stellar (XLM) is standing between rising and falling further. The outcome for XLM could be determined if traders find support or resistance at $0.27.

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