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Stellar (XLM) is often thrown into the same category as XRP because of their similar origins and cross-border ambitions. However, it has just hit a technical snag that is difficult to ignore. After a rally in July, during which it doubled in price in under three weeks, XLM has now slipped below its 10-day simple moving average — a line that traders usually regard as the barometer of short-term momentum.
When it holds, things tend to push higher. When it breaks, as it did this week, that is when the going gets tough.
The price dropped to around $0.426, and for those watching closely, this fall below the 10-SMA was not just a minor blip. This was the same line that had helped guide XLM during its steep climb from $0.25 to the $0.50 zone.
However, once this support level was breached, the trend shifted from smooth to shaky, and the candles turned indecisive. Unless it claws its way back above that moving average soon, the path of least resistance looks lower.
Meanwhile, XRP…
All of this is happening at a time when XRP is holding its ground above $3.17, still digesting its recent breakout and not yet showing any clear signs of reversal. While XRP has pulled back from its peak, it remains structurally intact for now.
The contrast makes Stellar’s stumble even more notable because one of the few tokens in the same conversation has lost its grip, while the other is still standing tall.
Markets do not need much to change direction, and when a previously popular token breaks trend support right after a parabolic move, that tends to dampen enthusiasm quickly.
Whether this is a full-blown breakdown or just a short breather, Stellar’s chart now looks far less confident than it did a week ago — and that is something the market will not ignore.
Vladislav Sopov
U.Today Editorial Team