A prominent market analyst has issued a warning of a potential deeper decline for Stellar (XLM), describing the current setup as one of the most vulnerable phases for the asset in 2025. Recent price action reflects growing weakness, with buyers struggling to reclaim lost ground and restore confidence.
**XLM Awaits a Major Breakdown**
In a recent post on X, TheBlockBull issued a stark warning, labeling the current Stellar setup as “Nuke Town Incoming.” The accompanying chart revealed a decisive breakdown below a long-term ascending trendline that had supported the token since early 2025.
XLM is now trading near $0.31 following repeated rejections from the $0.33-$0.34 resistance zone. This breakdown suggests a shift in market sentiment, with bulls losing momentum and sellers tightening control. The latest candle closed below this key support, indicating it may have transitioned into resistance, potentially signaling the start of a broader downtrend.
If bearish momentum continues, XLM could slide toward the critical $0.20 support zone. This level aligns with the yearly low and prior demand area and is expected to serve as a key decision point—determining whether the asset experiences a relief bounce or a deeper continuation of its bearish structure.
**Market Data Confirms Sharp Daily Decline**
According to BraveNewCoin data, Stellar is trading at $0.30, marking an 8.74% decline in the past 24 hours. The coin holds a market capitalization of $9.48 billion and a 24-hour trading volume of $335.2 million, ranking it 20th among global cryptocurrencies.
Despite the price correction, Stellar maintains an active circulating supply of 32 billion tokens, ensuring sufficient liquidity across markets. The decline reinforces the analyst’s caution that bullish momentum may be fading, especially if XLM fails to reclaim lost levels soon.
Nevertheless, strong on-chain participation and sustained capital inflows suggest some holders remain positioned for a potential recovery once market conditions stabilize.
**Technical Indicators Show Persistent Bearish Momentum**
At the time of writing, TradingView reports XLM/USDT trading at $0.2969—down 4.90% over the past 24 hours. The chart reveals a pronounced bearish structure after multiple failed attempts to break above the $0.32 resistance level.
Momentum has weakened, with sellers firmly in control as the asset struggles to maintain support above $0.29, signaling continued downside pressure.
The MACD shows a bearish crossover, with the signal line moving above the MACD line and the histogram extending red bars, indicating sustained downward momentum. This suggests recent recovery efforts have lost steam. However, if the histogram begins to contract, it may hint at slowing bearish pressure, potentially leading to short-term consolidation before a rebound attempt.
Interestingly, the Chaikin Money Flow (CMF) remains positive at 0.13, signaling that not all capital outflows have ceased. This indicates that despite the decline, some accumulation is occurring near current price levels. Should buying volume increase, Stellar could attempt a rebound toward the $0.33-$0.35 resistance zone.
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Overall, while XLM faces significant bearish pressure in the short term, select technical signals and on-chain activity hint at possible support and accumulation, keeping the door open for a potential recovery if buyers regain control. Investors should watch key levels closely to gauge the asset’s next move.
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