Stellar (XLM) fell 8.7% on Tuesday, sliding below a key support level as a death cross emerged on its price chart. One analyst tracking the token projects a target of $0.15 within the next ten days but warns that a sustained recovery is unlikely given the intensity of current selling pressure.
Death Cross Signals Further Weakness
The death cross formation — when a short-term moving average crosses below a long-term one — has historically preceded extended downtrends in cryptocurrency markets. For Stellar, the pattern appeared after weeks of declining prices and elevated volume. Technical traders often view this signal as a bearish indicator, suggesting momentum remains in sellers' hands.
XLM had been hovering near the $0.12 range before the drop. The breach of support at that level opens the door to lower valuations, according to chart analysis. The next major floor is unclear, but some traders point to the $0.10 area as a potential zone where buying interest could emerge.
Aggressive Selling Hampers Recovery Hopes
The analyst's projection of $0.15 within ten days implies a roughly 25% gain from current prices. But the same forecast calls the likelihood of a bounce-back “unlikely” because sellers are still offloading positions aggressively. Order book data shows sell walls building above $0.13, making a quick turnaround difficult.
Volume has picked up during the sell-off, suggesting that large holders may be reducing exposure. Without a catalyst — such as a network upgrade, exchange listing, or broader market rally — the token could struggle to attract buyers.
What’s Next for XLM Holders
The ten-day window the analyst set leaves little room for a reversal unless selling pressure eases. If XLM fails to hold above its recent lows, the next test could come quickly. For now, the market waits to see whether the death cross plays out as a self-fulfilling prophecy — or whether buyers step in before the token falls further.
