Bitcoin, XRP Fall Turns Stellar XLM into Red Sea
Stellar Lumens fell for the fifth day in a row as panic swept through the cryptocurrency market. Stellar (XLM) dropped to $0.256, the lowest this year, and is currently 68% below its November peak. The altcoin is down 11% for the day.
Market indicators revealed that XLM is closer to a death cross sign, an intersection of the( 200-day and 50-day moving averages). It has also dropped below the Fibonacci retracement level of 61.08 percent, a crucial technical area where most pullbacks occur
Stellar and Ripple have historically been closely related because of their close origin in the cryptocurrency industry. XRP has also been under a lot of selling pressure and has lost a fifth of its value within a week. XLM’s crash coincided with Bitcoin and XRP amid weak risk appetite
Bitcoin entered a corrective phase, dropping below $80,000 and losing almost 37% of its peak of $109K, which was reached during Trump’s inauguration on January 20. The asset’s recent bad performance wiped out 2025 gains.
The Crypto Fear and Greed Index recently reached an “Extreme Fear” score of 10, its lowest level in two years as market sentiment sharply declined.
Stellar’s fundamentals point to more downside risk. According to Santiment data, XLM’s overall open interest dropped to 64.05 million, the lowest since November 15. Reduced attention on social media is also indicated by the social volume metric, which has fallen to 0.28 from its peak of 0.55 last year. High social media engagement has historically been associated with a bullish momentum in the crypto market
Tensions between the US and some of its biggest trading partners, including China, Canada, and Mexico, have been rising, contributing significantly to the downturn in the digital space. There was a standoff because President Donald Trump declared new tariffs on goods from the three nations.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker