Stellar (XLM) prices have been trading flat for the past 24 hours, showing a movement of 0.3%. I’ve skied about 2.8% over the past seven days, but after three months of watching, it’s still up over 35%.
Longer trends leave some hope, but one fundamental issue has reduced momentum.
Defi unperformance limits the benefits of xlm
According to the data, the total value of Stellar (TVL) in DEFI has hardly moved. On July 31st, Stellar’s TVL was $143.5 million. By August 27th, it had reached just $142.48 million.
That stagnation contrasts with peers such as Solana, BSC and even Bitcoin Link Protocol, all saw a gush of defi growth in the same period.
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This lack of traction in Stellar’s Defi layer could be a heavy price. Still, buying activity is on the rise, indicating that retail traders are still trying to bullish.
The net spill has now run for five consecutive days, rising from $3.38 million on August 23 to $9.85 million on August 27th. This is nearly 200% increase.
It is noteworthy that despite Defi’s weaknesses, Stellar’s Real World Asset (RWA) segment is growing. RWA valuations rose by more than 13% this month, up at $510 million.
If Stellar could capture some of this demand, it could offset the slower XLM price drug. That’s more so if purchasing activities continue.
RSI floors show sellers are struggling
Beyond the flow, the technical signal adds another layer. Stellar’s daily RSI was repeatedly tested on the same floor (42.70) without dropping. This suggests that the seller could not get complete control.
Between August 19th and 21st, the RSI formed a slightly higher low, but the prices printed a low. That divergence caused sharp green candles in the charts. It showed that even downtrends can intervene when momentum changes.
The relative strength index (RSI) is a momentum index that tracks trading strength.
For a clearer bullish reversal, the RSI will need to form another higher low while the price continues to drift. This confirms that the seller is lacking in strength and gives buyers room to raise the price of XLM.
XLM Price Action: Important Levels to Watch
For now, Stellar remains stuck inside a pattern of descending triangles. This is a setup that often shows a bearish continuation. This means that the bias is further tilted towards the negative, as long as the key level does not break.
On the downside, support at $0.37 is important. Clean movement at this level can confirm a breakdown and cause deeper losses.
The advantage is a $0.39 resistance as the first hurdle. Breakouts above $0.42-$0.43, a zone that has previously served as both support and resistance, open the door for a stronger recovery. This can even negate the bearish pattern.
For now, however, XLM prices are balanced and traded in a range.
Post XLM has been caught up in a downtrend. What needs to break for rebound first appeared in Beincrypto.
