Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The crypto industry is experiencing capitulation, as most top projects that started the week positively, including Stellar (XLM), have commenced shedding their gains. The XRP rival has seen its price drop by 1.76% in 24 hours to $0.2873, according to CoinMarketCap data. While the reason for this sudden slump remains unknown, the coin is flashing signs of erasing its seven-day gains.
Stellar volatility and pressured metrics
Stellar's current outlook has forced it to take on underdog status against XRP. While Stellar has retained just 0.68% of its gains in the trailing seven-day period, XRP is still up 7.27% within the same period.
Godfrey BenjaminSome of the coin’s metrics have dropped in line with the price of XLM. The trading volume, for instance, is down by 26.9% to $261,476,049.98, a clear sign of reduced market participation.
Beyond the volume, Stellar has witnessed intense volatility in the past few hours. While the 24-hour price recorded a drawdown, the past hour before press time saw the coin jump by approximately 1.2%.
In what appears to be a rebound following its flipping by Toncoin over the weekend, the ongoing XLM breakout might signal that more selling off is ahead.
Altcoin market seeing uncertainty
The unexpected drawdown in the price of XLM reflects the state of most altcoins on the market. As of press time, Ethereum has also dropped by 2.35% in 24 hours, falling below the $2,000 support level.
Alex DovbnyaSolana is also experiencing a mild drawdown with a 1.1% loss to $130. When Ripple Labs CEO Brad Garlinghouse revealed the SEC’s lawsuit dismissal, these profiled altcoins skyrocketed to their highest level.
While it remains unknown if the current correlation is a signal that more price reversals are imminent, it proves that the much-sought-after altcoin season is yet to emerge.
Vladislav Sopov
Dan Burgin