Stellar's XLM token has experienced a significant downturn, plummeting 11% over the past week amid widespread bearish sentiment across the cryptocurrency market. The altcoin has broken below critical technical levels, including the 20-day exponential moving average (EMA) at $0.4187, which now acts as dynamic resistance and increases downward pressure.
Technical analysis reveals further weakness as XLM's price has fallen beneath the Leading Span A of its Ichimoku Cloud and is trending toward the Leading Span B at $0.3717, confirming weakening accumulation and strengthening bearish forces. The Ichimoku Cloud analysis suggests that unless XLM manages a decisive rebound above the cloud, the bearish trajectory could persist.
On August 19, XLM slipped an additional 1.75% in 24 hours, falling from $0.41 to $0.40 with unusually high trading volumes reaching 52.17 million—more than double the daily average of 25.43 million. The selling pressure was most intense between 13:30-13:46 UTC, when the token dropped from $0.410 to $0.404 on elevated per-minute volumes.
The market action has solidified resistance at $0.41 while establishing a narrow support band between $0.403-$0.405. If this support level fails to hold, analysts warn XLM could decline further to $0.3620. The token's inability to maintain momentum comes despite ongoing institutional interest in Stellar, including the foundation's investment in digital securities exchange Archax, which has been overshadowed by broader market headwinds.