XLM Slips Below Support as Indicators Signal a Possible 20% Price Rebound

• XLM breaks support as technical indicators hint at a possible rebound.
• Bollinger Bands suggest Stellar could stage a sharp 20% recovery.
• Weak volume persists while momentum signals show early reversal signs.

Stellar’s XLM traded below an important support level as selling pressure persisted across the market, following a 0.97% decline that extended its weekly loss to about 3.39%. Despite the weakness, technical indicators continued to point toward a possible rebound scenario. At press time, XLM exchanged hands near $0.2060 after slipping 0.5% over the last 24 hours, having earlier reached an intraday high of $0.2115 before sellers regained control. Meanwhile, market participation cooled as trading volume dropped 18.46% to $114.98 million.

Besides price movement, Bollinger Bands highlighted a widening volatility range showing the lower band near $0.1987. The upper band rested around $0.2403, creating a gap of roughly 20%, hence signaling rebound potential if momentum improves. However, broader market conditions continue to limit upside attempts as capital rotation away from altcoins remains visible amid overall risk aversion. Consequently, Stellar faces added pressure without consistent buying support.

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Momentum signals and volume trends guide market expectations

Significantly, momentum indicators suggest selling pressure may start to ease as the Relative Strength Index printed 41.29, signaling proximity to oversold conditions. Such levels often align with short term rebounds when downside momentum weakens, while limited profit taking could help stabilize prices near current levels.

Volume behavior remains a decisive factor for any recovery attempt, as weak demand could prevent Bollinger Band signals from triggering a breakout. Previously, the market recorded about $465 million in liquidations during a broad selloff, which reduced open interest and affected Stellar alongside other assets.

Network developments add longer term context

Meanwhile, Stellar’s network strategy continues to shape longer term sentiment, as developers emphasize infrastructure improvements and protocol stability. According to disclosures at the Meridian 2025 event, Stellar plans increased privacy focused investments aimed at expanding cryptographic capabilities and network efficiency.

Additionally, the network completed a protocol upgrade during the last quarter of 2025, with Protocol 24 resolving stability issues and system bugs. Such upgrades often support market confidence, especially during periods marked by technical uncertainty.

XLM remains positioned between downside caution and rebound potential, reflecting mixed market signals. Bollinger Bands point to upside room, while volume trends continue to signal hesitation among traders.

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