Skip to content

potentialimpending crash for Stellar (XLM), a primary competitor of XRP, as outlined in this report.

Stellar's (XLM) decline, inspired by Jed McCaleb, raises concern as XRP's price remains resilient

Potential Impending Collapse of Major Competitor Stellar (XLM): An Examination of the Possibilities
Potential Impending Collapse of Major Competitor Stellar (XLM): An Examination of the Possibilities

potentialimpending crash for Stellar (XLM), a primary competitor of XRP, as outlined in this report.

In the world of cryptocurrency, the contrast between Stellar (XLM) and Ripple (XRP) has become more pronounced. While XRP has held steady above $3.17, Stellar has experienced a setback, slipping below its 10-day simple moving average (SMA).

This move typically indicates a short-term bearish signal or weakening momentum for XLM, as the price moves below this near-term average. It suggests that XLM might be experiencing reduced buying pressure or a pullback after recent gains, which could lead to sideways trading or a minor price decline in the near term.

The current price movements of XLM around key resistance and support levels imply that unless there is a strong breakout with buying interest, the price might trade sideways or slightly bearish before potentially resuming an uptrend if bullish sentiment returns. The 10-day SMA often acts as a support level during upward trends, so falling below it may point to a pause or correction.

However, it's essential to consider the broader market context and technical indicators like the Relative Strength Index (RSI) and major exponential moving averages (EMAs). If XLM maintains an RSI near 60 and overall altcoin sentiment improves, the price could rebound back towards $0.28–$0.30 in July 2025. Conversely, if buying pressure stalls, XLM might dip towards a lower accumulation zone around $0.24–$0.25 before recovering.

Longer-term outlooks remain cautiously optimistic given Stellar’s ongoing network upgrades and real-world utility, such as fast, cheap cross-border transfers, which can drive fundamental demand and price appreciation. Some forecasts anticipate XLM reaching highs near $0.53 to $0.79 in 2025 if adoption continues, despite short-term fluctuations.

In summary, slipping below the 10-day SMA signals a potential short-term pullback or consolidation phase for Stellar. However, XLM’s future price could still see growth if key supports hold and bullish factors return.

Key Points

  • Slipping below the 10-day SMA signifies a potential short-term bearish signal or weakening momentum.
  • The near-term price could see sideways trading or a minor decline if buying pressure decreases.
  • A rebound towards $0.28–$0.30 could occur if the RSI remains strong and overall sentiment improves.
  • A dip towards $0.24–$0.25 might happen if buying pressure stalls.
  • The long-term outlook remains positive, with potential highs near $0.53–$0.79 in 2025.
  • Stellar's ongoing network upgrades and real-world utility are crucial underlying factors.

While the price slip below the 10-day SMA should be viewed as a call for caution in the near term, it's not a decisive bearish forecast. Buyer interest and network developments will be crucial for future price direction.

Meanwhile, XRP has pulled back from its peak but remains structurally intact, while Gemini has added XRP and SHIB as collateral for derivatives trading. The market may not ignore the less confident look on Stellar's chart compared to a week ago, and whether Stellar's current situation is a full-blown breakdown or a short breather remains unclear. If XLM does not claw its way back above the 10-day simple moving average soon, the path of least resistance looks lower, and the trend for XLM has shifted from smooth to shaky after breaching the 10-day simple moving average. A previously popular token breaking trend support after a parabolic move can dampen enthusiasm quickly, as XLM's price dropped to around $0.426 after breaching the support level of the 10-day simple moving average.

  1. A potential short-term bearish signal may be emerging for XLM as it slips below its 10-day simple moving average (SMA), hinting at reduced buying pressure or a pullback after recent gains.
  2. If the Relative Strength Index (RSI) remains strong and overall sentiment improves, there could be a rebound towards $0.28–$0.30 for XLM in the near term.
  3. In the world of cryptocurrency, the contrast between the price movements of tokens like Bitcoin, Ethereum, and their counterparts like Stellar (XLM) and Ripple (XRP) can indicate shifts in buying pressure and momentum.
  4. Although Stellar's price has dipped below its 10-day SMA, its long-term outlook remains positive due to ongoing network upgrades and real-world utility, providing a basis for potential growth, even if the trend for XLM has shifted from smooth to shaky. Investors and traders should closely monitor the token's buying interest and network developments for future price direction.

Read also:

    Latest