Stellar (XLM) extended its decline after sellers maintained firm control despite a pick-up in market activity.
The token was trading at around $0.1514 at press time, reflecting a daily loss of 7.85%, while trading volume climbed 10.55% to $236.47 million. This combination suggests that market participants actively participated in the decline instead of supporting a recovery.
XLM has drifted towards its next demand zone
XLM fell below a key horizontal support after failing to preserve its previous trading structure, leaving the $0.142 demand zone as the next major downside objective.
The price remained below the descending trendline, reflecting continued bearish control across the entire chart.
The MACD maintained a bearish crossover as the histogram remained below the zero line, showing that the downward pressure has not eased despite recent consolidation attempts.
Additionally, the SAR parabolic points continued to form above the candles, reinforcing the existing downtrend instead of signaling a reversal.
Buyers repeatedly attempted to regain lost ground, but each rally stalled below former support, reinforcing the bearish structure.
If sellers maintain control, XLM could continue to drift towards $0.142 before a significant recovery attempt emerges.
Buyers Weakened While Bears Retained Control
Momentum indicators continued to favor sellers as XLM approached another important technical test.
The relative strength index (RSI) fell to 34.42, placing it near oversold territory after prolonged selling pressure reduced buying participation.
Although the results suggest that the decline has become increasingly widespread, they have not yet confirmed a reversal signal.
Meanwhile, the Directional Movement Index (DMI) showed -DI at 25 remaining well above +DI at 21.38, while ADX climbed to 22.75.
This combination indicates that the dominant downtrend has retained enough strength to remain intact.
Buyers will likely need to regain control of the directional movement before sentiment improves. Otherwise, weakening participation could continue to support a further decline towards the next demand zone.
Is XLM heading towards the $0.142 demand zone?
Current market conditions have favored a further decline towards the $0.142 demand zone before buyers can attempt a sustainable 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 begin to build a recovery from this zone. Until these signals appear, the pessimistic scenario remains the most likely outcome.
Final summary
- Increased trading activity has failed to slow XLM’s decline as sellers continue to control the market.
- XLM could test the $0.142 demand zone before buyers attempt a significant recovery.
