Stellar (XLM) continued its decline after sellers maintained control despite a recovery in market activity.
The token was trading at approximately $0.1514 at press time, reflecting a daily loss of 7.85%, while trading volume increased by 10.55% to $236.47 million. The combination suggests that market participants are actively trading bearish rather than supporting the recovery.
XLM drifted towards the next demand zone
As XLM failed to maintain its previous trading structure, it fell below a key horizontal support, leaving the $0.142 demand zone as the next major downside target.
The price remained below the descending trend line, reflecting the ongoing bearish control on the chart.
The MACD continued its bearish trend with the histogram remaining below the zero line, indicating that the downward pressure has not abated despite recent consolidation attempts.
Additionally, Parabolic SAR points continued to form above the candles, reinforcing the current downtrend rather than signaling a reversal.
Buyers repeatedly tried to regain lost ground, but each recovery stalled below the previous support, strengthening the bearish structure.
If sellers maintain control, XLM could continue to drift towards $0.142 before a meaningful recovery attempt emerges.
Buyers weaken as bears maintain control
Momentum indicators continued to favor sellers as XLM approached another major technical test.
The Relative Strength Index (RSI) fell to 34.42, approaching the oversold zone, after prolonged selling pressure reduced buying participation.
Although the readings show that the decline is getting longer and longer, it has not yet confirmed any sign of a reversal.
Meanwhile, the Directional Movement Index (DMI) showed -DI remaining at 25, well above +DI at 21.38, while ADX climbed to 22.75.
This combination suggests that the prevailing downtrend is strong enough to remain intact.
Buyers will likely need to take back control of the directional move before sentiment improves. Otherwise, weakening participation may continue to support a lower leg into the next demand area.
Is XLM heading to the $0.142 demand zone?
Current market conditions have allowed for another decline towards the $0.142 demand zone before buyers attempt a sustainable recovery.
While selling pressure dominated both Spot order flow and price structure, trend indicators continued to support the bearish outlook.
However, if buyers successfully defend the demand zone and momentum indicators stabilize, XLM may begin to recover from this zone. Until these signals emerge, the negative scenario will continue to be the more likely outcome.
Final Summary
- Increased 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.
