Stellar's XLM token saw a significant 9.48% price drop over the past 24 hours, falling from $0.1733 down to $0.1569. This steep decline brings Stellar's price to its lowest level in over a week, after hitting 2022 highs earlier this month.
Examining the Volume and Market Capitalization
Despite the sizable single-day drop, Stellar still maintains a market capitalization of $4.55 billion. This ranks XLM as the #30 largest cryptocurrency by market cap.
Over the past 24 hours, Stellar saw $732 million worth of trading volume. This level of activity is on par with XLM's average daily volume over the past month. It indicates that while sellers drove down the price yesterday, overall interest and activity around Stellar remains stable.
Short-Term Bearish Momentum
In the past week, Stellar is down 9.48%, underperforming the broader crypto market which is roughly flat over the same timeframe. Much of this decline came in the past 24 hours, as Stellar had traded sideways for most of the week prior.
The coin also saw steep drops in the past hour (-6.17%) and past day (-9.48%), indicating strong short-term bearish momentum. This downward trajectory will likely continue unless XLM can regain its footing above the key $0.17 level.
Longer-Term Momentum Still Bullish
Despite the recent pullback, Stellar maintains strong upside momentum over the past month and past 6 months. XLM is up 87.43% in the last 30 days, and up 73.65% in the last 6 months.
This indicates that while the short-term trend has turned bearish, the longer-term outlook remains decidedly bullish. As long as Stellar can hold support above $0.15, the uptrend seems likely to resume, potentially targeting a retest of 2022 highs around $0.20.
Predictions and Key Levels to Watch
My prediction is that Stellar will find buying support near the current $0.15 - $0.16 zone. This area lines up with XLM's 50-day moving average, which should provide a backstop.
If sellers push the price below $0.15, Stellar could see a steeper decline towards the 200-day MA around $0.13. However, given the strong bullish momentum over the past month, I expect the $0.15 zone will hold and provide a launching pad for the next leg higher.
What are the key support levels traders should monitor for Stellar in the coming days?
The most important near-term support level to watch is the $0.15 mark. This lines up closely with Stellar's 50-day moving average, which is likely to attract significant buying interest.
Below that, the $0.145 - $0.13 zone around the 200-day MA is the next key support area to monitor. As long as XLM holds above this zone, the longer-term uptrend remains intact.
On the upside, Stellar will need to break back above short-term resistance at $0.17 to negate the recent bearish momentum. Beyond that, the 2022 highs around $0.20 mark the next major resistance level where sellers may emerge.
How high can Stellar's price go in 2023 if the bull market continues?
If the crypto bull market continues through 2023, Stellar could potentially double from current levels or higher. With XLM trading around $0.15 today, a rally to $0.30 by end of 2023 is feasible if bullish sentiment persists.
Stellar reached an all-time high price of $0.94 back in January 2018 during the last major crypto bull market. Given XLM's strong gains this year, it's not unrealistic to expect the token could test or even exceed its former ATH if the current bull run continues.
A price of $0.50 - $1.00 for Stellar by late 2023 is likely if crypto sentiment remains positive. However, XLM will need to see steady adoption and real-world usage growth to justify these higher valuation levels. If bullish momentum stalls, a more conservative 2023 target would be around $0.25 - $0.30.