The crypto market has delivered a sharp jolt to Stellar’s native token XLM, with an 18 % drop in just a fortnight and a surge in trading volumes signalling intensified selling pressure. Yet, as the token hovers near the crucial $0.30 level, analysts are watching closely: will this level hold as a floor — or will we see a fresh drop below before a possible turnaround?
The recent sell-off in XLM has been severe: in about two weeks the token declined approximately 18 %, while trading volumes increased by around 24 % in the last 24 hours, indicating that sellers have been aggressive as market sentiment soured.
The critical level now in focus is the ~$0.30 region: this price area has previously acted as both support and resistance, and many traders view it as a make-or-break threshold. If XLM manages to hold above approximately $0.30, this could provide a launch pad for a recovery to higher values — some technical observers even point to a potential rise toward ~$0.40. On the other hand, if the $0.30 support fails to hold decisively, the path may open for a drop to lower levels, possibly below $0.30, which would further weaken confidence and amplify downward momentum.
Key support holds the fate of the next move
Technically, the indicators are showing a mixed picture. The token has slipped below its 200-day exponential moving average, and oscillators such as the Relative Strength Index (RSI) suggest it is nearing oversold territory — which can sometimes precede a rebound.
But the risk remains elevated: with sentiment weak and market conditions still fragile, a bounce isn’t guaranteed unless buying interest ramps up. The resistance overhead, in the event of a rebound, lies around the $0.40 mark, which might represent a medium-term target if key support holds firm. For now, the game is simple: hold the ~$0.30 line or face deeper decline.
Market participants will watch closely whether accumulation begins or capitulation continues. In summary, while the recent crash raises alarms, it also sets the stage for a possible turnaround — but only if the token secures this critical support zone and sentiment shifts in favour of buyers.
