Stellar [XLM] continued its decline as sellers maintained firm control despite picking up market activity.
The token was trading at around $0.1514 at the time of writing, reflecting a daily loss of 7.85%, while trading volume increased by 10.55% to $236.47 million. The combination suggests that market participants were actively riding the decline rather than supporting a recovery.
XLM drifted into its next demand zone
XLM broke below a key horizontal support after failing to maintain its previous trading structure, making the $0.142 demand zone the next major downside target.
The price remained below the descending trendline, reflecting continued bearish control over the entire chart.
The MACD maintained a bearish crossover while the histogram remained below the zero line, showing that downward pressure has not abated despite recent consolidation attempts.
Furthermore, the parabolic SAR dots continued to form above the candles, reinforcing the existing downtrend rather than signaling a reversal.
Buyers repeatedly tried to regain lost ground, but any recovery stalled below previous support, reinforcing the bearish structure.
If sellers were to maintain control, XLM could continue to drift towards $0.142 before a meaningful recovery attempt.
Buyers weakened as the bears maintained control
Momentum indicators continued to favor sellers as XLM approached another key technical test.
The Relative Strength Index (RSI) fell to 34.42, close to oversold territory, after heavy selling pressure reduced buying participation.
Although the figures showed that the decline lasted longer and longer, there was no reversal signal yet.
Meanwhile, the Directional Movement Index (DMI) showed -DI at 25 remaining well above +DI at 21.38, while the ADX rose to 22.75.
This combination indicates that the prevailing bearish trend has retained enough strength to remain intact.
Buyers will likely need to regain control of the price movement before sentiment improves. Otherwise, weakening participation could continue to support another leg lower towards the next demand area.
Is XLM heading towards the $0.142 demand zone?
Current market conditions favored another decline towards the $0.142 demand zone before buyers could attempt a sustained recovery.
Selling pressure dominated both spot order flow and price structure, while trend indicators continued to support the bearish outlook.
However, if buyers successfully defend the demand zone and momentum indicators stabilize, XLM could build a recovery from that area. Until these signals materialize, the downside scenario remains the most likely outcome.
Final summary
- Rising trading activity failed to slow XLM’s decline as sellers continued to control the market.
- XLM could test the $0.142 demand zone before buyers attempt a meaningful recovery.