- Stellar (XLM) lags behind Bitcoin and altcoins, gaining just 2.8% compared to BTC’s 14% rise.
- Trading volume has collapsed from early 2025 highs, reflecting fading market interest and liquidity.
- XLM hovers above key $0.26 support as a potential death cross signals growing bearish pressure.
Stellar (XLM) is entering May 2025 on shaky ground, trailing significantly behind Bitcoin and a host of outperforming altcoins in both price performance and trading activity.
Once a major crypto holding for the mid caps, the token is seeing fading momentum and deepening trader lack of interest. XLM hasn’t been able to match Bitcoin’s upside strength and mirrors Bitcoin’s general market movements.
Bitcoin appreciated by over 14% while Stellar added a marginal 2.8% gain during the previous month. Instead of Stellar, other altcoins such as Hedera (HBAR) have seen stronger rallies that widened the performance gap and raised questions as to whether Stellar can play a role in the current market cycle.
Stellar Breaks from Altcoin Norms, Raises Red Flags
Crypto analyst Jenna Liu of Arcane Digital said Stellar was showing the worst of both worlds. What it doesn’t do is pick up the gains when the market does well and still crashes in corrections. That’s not the kind of behavior to instill confidence, he said.
XLM indeed has been quite volatile, and its volatility has been leaning decisively negative. In contrast, altcoins are generally known for magnifying bitcoin’s moves in both directions, but Stellar seems to be out of the picture in that regard by participating fully in downside correction and missing out on the corresponding rallies in equal measures.
However, market volume brings another level of worry. XLM’s trading volume around has plummeted from its Q1 highs. The daily volume hammered bottom April 23 at $311 million, the lowest since Cashespot began keeping track in September, down from a high of $930 million on March 3 and light years from the $1 to $2 billion levels seen in January and February.
Key ingredients for price stagnation or even further downside, the slide also neatly summarises a broader disinterest among traders and a lack of liquidity.
XLM Risks Breakdown Below Key Support
Technical indicators are flashing red as well. Currently, XLM is opportunistically between the support level of $0.26. Short term exponential moving averages are converging towards a potential “death cross” of short EMAs below long EMAs and the possibility of breaking through decisively cuts below could be the beginning of a longer term shift to bearishness.
Liu further predicted that if the $0.26 floor is cracked, Stellar could slide to $0.239 and $0.20 could become the next major support. This is just not lining up favorably technically or fundamentally right now.
All is not lost for XLM bulls yet. However, a rebound, which sends the token higher, above its $0.297 resistance may give an equal boost. If volume is returned along with any meaningful pullback, there’s potential to retest $0.349, $0.375, after which $0.44 and $0.495 can be realized. Such a scenario will require a dramatic shift in sentiment and participation where they are currently quite lacking.Stellar is at a crossroads for now.
The token could be pivotal in determining whether or not it takes its place back in the crypto spotlight or slips further into the background as more and more altcoins continue to spring up.
