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Stellar (XLM) is currently trading below a key support zone after it fell by 0.97% to extend its weekly loss by 3.39%. Despite this slight drop, Stellar’s Bollinger Bands suggest that the coin could witness a 20% price breakout.
Stellar indicators hints at potential reversal
Stellar’s lower Bollinger Bands, as per CoinMarketCap data, indicate XLM’s price at $0.1987, while the upper bands sit at $0.2403. The difference between these two bands amounts to about 20%. Hence, a breakout by this percentage point could push XLM’s price to the $0.24 zone.
To achieve such a significant climb, Stellar needs to shake off the bearish momentum it is locked in at the moment. The situation is worsened by capital rotation away from altcoins as a result of broad market weakness.
However, Stellar could witness a reversal in price outlook if bulls throw in support, as the Relative Strength Index (RSI) at 41.29 hints it might soon enter oversold territory. Once it does, a rebound is potentially possible if short-term investors do not engage in massive profit-taking moves.
As of press time, Stellar exchanged hands at $0.2060, down 0.5% in the last 24 hours. It dropped from an intraday high of $0.2115 as trading volume slipped by as much as 18.46% to $114.98 million within the same time frame.
Without bulls returning to support Stellar, the Bollinger Bands' signal might not materialize. The volume needs to climb from its current red zone and flip green with significant numbers.
The asset had previously suffered $465 million worth of liquidations after selling pressure triggered a drop in open interest and volume. In that instance, the losses were market-wide and not restricted to Stellar alone.
Stellar’s long-term network plans
Meanwhile, given the massive appeal that privacy coins now have in the cryptocurrency space, Stellar is eyeing investment in the sector.
Notably, at the Meridian 2025 event, Stellar revealed its long-term privacy plans. Stellar assured that it would invest in infrastructure and build cryptographic capabilities.
Stellar had conducted a protocol upgrade in the last quarter of 2025. The code released for its Protocol 24 was carried out to ensure stability issues were addressed and to fix certain bugs in the system.
Godfrey Benjamin
Gamza Khanzadaev
Arman Shirinyan
Tomiwabold Olajide