While the Market Turns Green, Stellar Dips 4.3% This Week

While most major cryptocurrencies are flashing green, Stellar (XLM) has bucked the trend, recording a 4.3% decline over the past week. As of Monday, 21 July, XLM is trading at US$0.4777, following a failed attempt to break past a critical resistance level at US$0.50.

This comes as a surprise to many investors, considering that just days earlier, Stellar had shown signs of strong upward momentum. Trading volume spiked nearly 297% in a single day, and the token briefly surged by 10% following the announcement of its latest core software update: Stellar Core v23.0.0rc2. However, the optimism was short-lived.

Momentum Falters Amid Rising Outflows

Despite the initial surge, increased outflows from exchanges combined with weakening momentum indicators have pushed Stellar into a bearish territory. Analysts point to a growing lack of buying pressure around the US$0.50 level, which appears to be acting as a stubborn psychological barrier.

“The inability to break through that resistance zone signals hesitation among traders,” said crypto analyst Luke Morrison, based in Sydney. “It suggests profit-taking is occurring faster than accumulation, especially after that sharp spike in volume.”

What’s Next for Stellar (XLM)?

Should the token continue to face selling pressure and fail to regain bullish momentum, technical indicators suggest that Stellar could retest lower support levels at US$0.43 or US$0.41. A further breakdown below those levels could see XLM fall toward US$0.35, marking a significant retracement from recent highs.

Still, not all outlooks are bleak. Some market watchers believe that the upcoming full release of Stellar Core v23 may yet bring renewed interest in the token—provided broader market sentiment remains positive.

"Development activity remains strong within the Stellar ecosystem," noted blockchain researcher Ella Tan. "That often translates into renewed investor confidence, especially if new use cases or network improvements are rolled out."

Broader Market Context

Stellar’s underperformance stands in contrast to a broadly bullish crypto market. Coins like Bitcoin (BTC) and Ethereum (ETH) have both gained between 3–5% in the past week, bolstered by improving macroeconomic indicators and renewed institutional interest in crypto assets.

As always in the crypto space, volatility remains high, and reversals can occur swiftly. For now, however, Stellar holders may need to brace for further downside unless a clear breakout above US$0.50 is achieved soon.