Stellar (XLM) Price Warning: Death Cross and Exchange Flows Signal Potential Drop to $0.26

Stellar (XLM) is trading at $0.39, but technical charts are flashing red as indicators point toward a potential selloff. In the past 24 hours, XLM has dropped over 5%, and weekly losses stand at 6.4%. Traders are now warning that the token could face deeper losses if bearish momentum accelerates.

A key concern comes from the recent death cross formation on the two-hour chart. The 20-period EMA has crossed below the 50-period EMA, a bearish signal often interpreted as the beginning of stronger downward momentum. When this pattern emerges during already weak market conditions, it usually strengthens selling pressure, leading to sharper declines.

Exchange Flows Turn Bearish

Adding to the caution, Stellar’s exchange flows have shifted direction. For weeks, netflows were slightly negative, a bullish sign indicating fewer tokens were moving onto exchanges. However, this trend has now flipped, with more XLM entering exchange wallets.

When investors move tokens back to exchanges, it is often a sign of preparation to sell. Combined with the death cross, this shift suggests that bearish sentiment is gaining traction, putting pressure on current support zones.

If sellers maintain control, the next key supports at $0.29 and $0.26 could come under threat. Analysts caution that the combination of technical breakdowns and increased selling supply creates conditions ripe for further downside.

XLM Outlook: Waiting for Stronger Support

Despite the bearish technicals, Stellar remains fundamentally strong, especially with ongoing network upgrades and real-world adoption of its blockchain technology. However, short-term traders are likely to remain cautious until price action stabilizes.

The $0.34–$0.35 region could act as a near-term pivot point, but stronger support lies lower, making patience a prudent strategy. A confirmed move below $0.34 could accelerate the drop toward $0.29–$0.26, while a bounce above $0.40 would be the first sign of recovery.

For now, Stellar investors face a make-or-break moment. With a death cross in play and exchange activity signaling selling intent, buyers may want to wait for confirmation of stability at lower levels before re-entering.