Stellar (XLM) Sees 8.4% Surge and Subsequent Drop Amid December Market Volatility

Stellar (XLM) experienced significant price volatility at the start of December 2025, with an 8.4% surge to $0.249 on December 2, followed by a drop to $0.23 on December 1, highlighting shifting market dynamics and trader sentiment.

On December 2, XLM's price rose sharply during low-liquidity sessions, reaching $0.249, a move attributed to market makers absorbing sell orders over the weekend. This pattern mirrors liquidity rotations common at the beginning of each month, with analysts noting early repositioning by larger participants. However, the rebound faced resistance at $0.25, and underlying weakness persisted, including deteriorating bullish conviction in spot and derivatives markets.

Prior to this, on December 1, XLM fell 8.58% to $0.23, breaking down from a consolidation range. Technical indicators showed a clear decline, with Open Interest dropping to 61.7M, indicating reduced trader exposure and lack of conviction. The MACD remained negative at -0.0118, and Chaikin Money Flow (CMF) was at -0.09, reflecting sustained capital outflows. Market capitalization stood at $7.49 billion with a 24-hour volume of $145.97 million, ranking XLM 24th among cryptocurrencies.

The price action is set against a broader crypto market cooldown, where multiple assets struggle to hold key levels. Traders are monitoring for signs of strength or exhaustion to determine if XLM will extend gains or revert to previous ranges, with the token hovering near long-term support zones.