Stellar (XLM) declined 7.27% over the past 24 hours to $0.1164, extending the recent downward momentum for the payments-focused cryptocurrency. XLM has now dropped 16.72% over the past week as the broader crypto market struggled.

With a market cap of $3.17 billion, Stellar remains one of the most widely traded altcoins. For traders evaluating whether this dip presents a buying opportunity, here are the key insights from the latest XLM price action:

Short-Term Selling Pressure Remains

Despite the sizable single-day drop, Stellar still saw $152 million worth of trading volume over the past 24 hours. This points to ongoing liquidation activity amid the selloff.

However, XLM did bounce 0.82% in the past hour. This could signal short-term capitulation is nearing an end and a potential relief rally may materialize soon. RSI readings on the 4-hour chart show XLM has entered oversold territory.

So while more volatility is likely, a corrective bounce appears increasingly probable in the near-term. The 10-day moving average near $0.13 will be the first major resistance.

Long-Term Price Floor in Sight

Zooming out to the weekly chart, Stellar remains stuck in a bearish channel after topping out around $0.90 last September. However, XLM appears to be approaching a major long-term support zone.

The $0.10 level aligns closely with the 78.6% Fibonacci retracement of Stellar's all-time high move. This area also lines up with 2019 highs and the peak of the early 2018 bubble.

So while the short-term trend remains negative, XLM could be closing in on a macro reversal zone where bulls have a chance to take control. RSI divergence on the weekly chart adds credence to this possibility.

Why Stellar Looks Attractive for Accumulation Here

Stellar offers crypto investors an intriguing opportunity at current prices based on both technicals and fundamentals:

• Approaching major multi-year support and oversold conditions signal capitulation
• Deep discount compared to 2021 high presents attractive risk/reward at $0.12 entry
• Network usage and adoption continue expanding, providing long-term utility
• XLM offers fast/cheap transactions, ideal for cross-border payments
• Fixed token supply and disinflationary dynamics lend stability

For traders and investors eyeing the next bull cycle, Stellar appears deeply undervalued. The technical backdrop combined with strong project fundamentals make XLM a candidate worth considering here.

Near-Term XLM Price Prediction

Based on this analysis, my near-term prediction for Stellar is as follows:

• XLM may rally back towards $0.13 if short-term oversold readings spark a relief bounce. Look for rising volumes and a break of the 10-day MA as confirmation.
• However, major resistance around $0.16 would likely cap and reject the first rally attempt. Stellar bulls lack momentum for a sustained breakout yet.
• A weekly close below the $0.10 support zone would confirm capitulation. This could invite a climactic selloff before bottoming out between $0.08 - $0.09.

Unless crypto sentiment improves quickly, volatility is likely to remain elevated in the short-term. But the long-term setup offers sizable upside, especially for patient accumulators.

Is Stellar a Good Long-Term Investment?

Stellar boasts a unique combination of real-world utility and deeply discounted prices that could make it an intriguing long-term investment:

• Growing global adoption for cross-border payments, especially in emerging markets
• Fast transactions and negligible fees create user experience edge
• Recent upgrades like Protocol 18 increase capabilities and scalability
• Strong leadership team including founder Jed McCaleb lends stability
• Huge upside gap versus all-time high presents appealing risk/reward

However, some risks to consider include:

• Struggled to stand out from other payment-focused cryptos like XRP and Nano
• Relatively limited developer activity and DeFi integration
• Reputation over the years as an 'overpromise, underdeliver' project

At current prices, Stellar offers substantial potential upside with limited downside risk on a multi-year time horizon. For crypto investors, buying technically oversold tokens with strong fundamentals is a historically profitable strategy.

Can Stellar Eventually Reach $1?

Stellar currently trades at just $0.12, down over 85% from its all-time high around $0.90. However, if accelerating adoption drives renewed hype and speculation, XLM regaining the $1 level appears feasible. Here are some potential catalysts:

• Mainstream PayPal integration or partnerships give XLM global visibility
• Success capitalizing on CBDCs as Naples consensus protocol takes off
• Speculative mania returns to altcoins, lifting all boats higher
• Staking and DeFi yield opportunities boost XLM holder incentives

However, some challenges remain:

• Failure to differentiate from competitors leads to loss of market share
• Declining network usage and volumes signal waning interest
• Existing whales distribute tokens, suppressing major upside

Overall, a surge back to $1 in the next bull market frenzy seems achievable with the right catalysts. Stellar's discounted current price presents a low-risk opportunity for potentially outsized long-term gains.