Stellar’s XLM token lost nearly 9% in a single session on Tuesday, sliding to $0.195 as a fight between aggressive spot buyers and a stubborn downtrend played out on the charts. The cryptocurrency is now resting on dual long-term moving average support, a level traders will be watching closely in the next few sessions.
Price action and the $0.20 line
The selloff pushed XLM below the psychological $0.20 mark, a round number that had acted as a floor in recent weeks. While the token briefly bounced off the moving averages, the failure to hold $0.20 raises the risk of a deeper slide. Technical traders looking at the charts see the next clear target at $0.18 if that support breaks.
Buyers vs. the downtrend
Despite the sharp drop, spot buyers have been stepping in aggressively, according to exchange order-book data. That buying pressure has slowed the decline and kept XLM from falling even further. But it hasn’t reversed the broader trend. The token remains in a downtrend that started earlier this month, and the recent bounce from the moving averages is the latest test of whether buyers can turn things around.
What the moving averages tell us
The dual long-term moving averages that XLM is resting on — often the 50-day and 200-day — are a common technical reference point. When a cryptocurrency holds above them, it signals underlying strength. A sustained break below would be a bearish sign. Right now, the token is sitting right on them, making the next few trading sessions critical.
The question isn’t whether XLM can rally from here — it’s whether the buying pressure can hold long enough to push the price back above $0.20. If it doesn’t, $0.18 becomes the new line in the sand.
