Stellar Price Struggles Below $0.38 as Bearish Trend Persists
Stellar (XLM) has shown slight signs of life this week, climbing 2.8% over the past seven days, but its broader trend still tilts bearish. After falling nearly 29% in three months, the token continues to struggle with momentum despite short-lived rebounds.
Now, traders are closely watching a key resistance level that could determine whether this mild recovery turns into a sustained uptrend—or fizzles into another pullback.
Hidden Bearish Divergence Signals Weak Momentum
Despite strong on-chain growth and an uptick in social media discussions, XLM’s technical indicators suggest that buying power is losing steam. The Relative Strength Index (RSI) is flashing a hidden bearish divergence, a signal that often hints at weakening momentum during short-term rallies.
Between October 20 and 25, Stellar’s price formed a lower high, while the RSI made a higher high—a classic sign that the recent bounce may be running out of fuel. A similar setup between September 13 and October 6 preceded a 32% drop, adding weight to traders’ caution this time around.
Interestingly, while the chart looks fragile, Stellar’s tokenized real-world asset (RWA) value has surged 26.51% in the past 30 days, reaching $638.8 million. This growth helped boost the project’s social dominance from 0.648% to 0.794% within 24 hours. However, despite all the buzz, on-chain data shows that interest hasn’t yet translated into aggressive buying.
XLM Stuck Below $0.38 as Bears Maintain Control
On the daily chart, XLM remains trapped within a descending channel, where each attempt to move higher meets renewed selling pressure. The bearish structure suggests that bears still control the market, with rallies failing to shift the broader trend.
For XLM to show real strength, it must break above $0.38, the upper boundary of the channel—a move that would represent roughly a 20% gain from current levels. A stronger breakout above $0.41 could even hint at a potential trend reversal.
On the downside, support sits near $0.30. Failure to hold that level could open the door for a deeper decline toward $0.23, the next major demand zone.
