Stellar (XLM) is experiencing a negative session this October 22nd. The cryptocurrency registered a correction of over 5% in the last 24 hours. This Stellar (XLM) price drop caused the loss of the critical support level of $0.32. Technical analysts, such as those from the analysis firm GlobalCharts, are closely monitoring the price action.
The digital asset was trading stable above $0.33 during the early hours of the Asian session. However, volatility increased significantly mid-morning, coinciding with the opening of European markets. Trading volumes accompanied the decline, increasing by 35% according to CryptoCompare data. This confirms the strength of the current bearish trend. The price reached an intraday low of $0.315 on major exchanges. This is its lowest level in the last three weeks. The support break was swift. It indicates that many stop-loss orders were triggered simultaneously.
The $0.32 level was not an arbitrary figure for the XLM/USD pair. It represented a key psychological and technical support for investors since the beginning of the month. This zone had halted previous decline attempts in the last two weeks. It served as a base for a bullish rally attempt that failed near $0.35. Its breach now suggests a notable shift in market sentiment. Buyers, who previously defended this line aggressively, seem to have exhausted their defensive strength. This move also invalidates the short-term bullish structure. It opens the door to a new corrective phase for the asset.
Will we see a deeper correction in XLM?
With the $0.32 support now turned into new resistance, technical analysts are looking lower. The next relevant bearish target is located near the $0.28 zone. This level coincides with a significant previous low from last month. This scenario will largely depend on the overall market behavior.
Bitcoin (BTC) is also showing weakness, trading near its own critical supports. A drop in BTC could easily drag down major altcoins, including Stellar. XLM holders must monitor daily closes. A close below $0.31 could confirm the continuation of the Stellar (XLM) price drop.
Today’s Stellar (XLM) price drop is a clear reminder of the high volatility inherent in the crypto market. Although the fundamentals of the Stellar blockchain (such as the recent Soroban upgrades) remain solid, technical analysis is dominating the short-term price action. It will be crucial to watch if the $0.30 psychological zone acts as intermediate support before reaching $0.28. The next few days will define the trend for the end of October. Reclaiming $0.32 will be essential to invalidate the current bearish outlook.
