Stellar’s price has experienced a significant decline as altcoins mirrored Bitcoin’s trend on Monday. A drop below $0.22 could trigger further losses toward a critical support zone at $0.20. With mounting selling pressure and a cautious market sentiment, deeper corrections may follow.
XLM Price Approaches Multi-Month Support
In recent months, the $0.20 mark has emerged as a crucial demand level for Stellar. Following a brief surge above $0.24, the price has since retreated to $0.22 for support. Attempts to recover were capped at around $0.23, and by January 19, the price slipped below $0.21 as Bitcoin fell below $93,000.
Repeated rejections and a notable downtrend may challenge buyers’ resolve, possibly pushing the price down to $0.20 or lower. Derivative measures indicate a cautious environment, with open interest declining to $131 million, and long/short ratios suggesting a buildup of short positions. Unfavorable conditions may prompt targets below $0.20, especially as it correlates with Bitcoin’s performance.
“Gold just reached a new all-time high of $4,600. It’s heading toward $5,000, a major resistance level at $4,618 for Fibonacci extension,” noted crypto analyst Lark Davis on X.
“However, the quicker gold approaches $5,000, the faster we may see significant capital rotation from precious metals to Bitcoin,” he added.
Technical Price Outlook
Bearish trends are visible, with XLM trading below its 50-day ($0.227) and 200-day ($0.324) moving averages. The price has accelerated downward since October 10, 2025, forming a bearish structure as the RSI dipped below 50 after briefly exceeding an overbought line.
Price rejections at previous support levels indicate that $0.25 and $0.22 have now turned into overhead resistance. Moreover, a daily close below $0.20 could accelerate the descent toward multi-year lows of $0.18 and $0.14.
In contrast, Stellar could aim for supply zones at $0.32 and $0.41, contingent on a daily close above $0.23, which would validate this bullish scenario.
The last time XLM’s price surged dramatically, bulls rallied from $0.10 to over $0.63 in November 2024 and from $0.24 to a peak of $0.52 in July 2025. Such gains corresponded with peaks for XRP, an altcoin related to XLM in product goals. Ripple’s token reached highs of $3.42 in July, outperforming the broader market due to significant catalysts such as regulatory milestones and the launch of the stablecoin RLUSD.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
