Stellar (XLM) continued its decline after sellers maintained tight control despite a rebound in market activity.
The token was trading at around $0.1514 at press time, reflecting a daily loss of 7.85%, while trading volume rose 10.55% to $236.47 million. This combination indicates that market participants actively traded the decline rather than supporting the recovery.
XLM drifted towards the next demand zone
XLM broke through the key horizontal support level after failing to maintain the previous trading structure, leaving the $0.142 demand zone as the next major downside target.
The price remained below the downtrend line, reflecting continued bearish control across the chart.
The MACD maintained a bearish crossover as the histogram remained below the zero line, indicating that the downward pressure has not abated despite recent consolidation attempts.
In addition, Parabolic SAR points continued to form above the candles, reinforcing the current downtrend rather than indicating a reversal.
Buyers repeatedly tried to regain lost ground, but each recovery faltered below the previous support level, consolidating the bearish structure.
If sellers maintain control, XLM may continue to drift towards $0.142 before any meaningful recovery attempt emerges.
Buyers weakened as bears maintained control
Momentum indicators continue to favor sellers as XLM approaches another important technical test.
The Relative Strength Index (RSI) fell to 34.42, putting it close to oversold territory after extended selling pressure led to lower buying engagement.
Although the reading indicates that the decline has been increasingly extended, it has not yet confirmed the reversal signal.
Meanwhile, the Directional Movement Index (DMI) showed that -DI at 25 remained well above +DI at 21.38, while the ADX rose to 22.75.
This combination indicates that the prevailing downtrend maintains enough strength to remain intact.
Buyers will likely need to regain control of the directional movement before sentiment improves. Otherwise, weak participation could continue to support another decline towards the next demand zone.
Is XLM heading towards the $0.142 demand zone?
Current market conditions favor another decline towards the $0.142 demand zone before buyers can attempt a sustained recovery.
Selling pressure dominated both spot order flow and price structure, while trend indicators continued to support the bearish outlook.
However, if buyers successfully defend the demand zone and momentum indicators stabilize, XLM could start building a recovery from that zone. Until these signs appear, the bearish scenario remains the most likely outcome.
Final summary
- Increased trading activity failed to slow XLM’s decline as sellers continued to dominate the market.
- XLM could test the $0.142 demand zone before buyers attempt a real recovery.
