Stellar Price Weakens 12% Over the Week on Continuous Outflows

Over the last week, Stellar (XLM) lost around 12% as investors continue to withdraw funds. It currently trades at $0.39 and faces ongoing pressure. Brief recoveries have not been enough for it to bounce back, reflecting uncertainty in the wider cryptocurrency market.

Investor Sentiment Remains Weak

The Chaikin Money Flow (CMF) has been below zero since early August, pointing to steady outflows from Stellar. This indicator, which evaluates buying and selling pressure over time, suggests that investors remain cautious and are holding back new investments in XLM. Negative CMF readings usually point to extended selling periods, and Stellar currently fits this pattern.

The Relative Strength Index (RSI) has also dropped below the neutral mark, showing weakening momentum. With buying pressure limited, XLM’s short-term performance is under stress, giving sellers an advantage.

Investor caution seems influenced by broader market factors as well. Economic uncertainty, regulatory changes, and mixed signals from other major cryptocurrencies are prompting careful positioning. For many holders, decisions to pull funds are driven more by external conditions than by sentiment toward Stellar itself.

Together, these technical and market factors create a difficult trading environment. Until sentiment improves or new catalysts emerge, XLM is likely to remain under downward pressure.

Broader Market Factors Influencing XLM

Stellar has recently experienced a decline that mirrors broader market movements. XLM has been leaving exchanges over the past week, pointing to holders moving funds to wallets or stablecoins. Bitcoin’s modest correction has also impacted sentiment for altcoins, prompting traders to lower their positions in smaller cryptocurrencies like XLM.

Blockchain metrics indicate falling transaction volumes and a slowdown in network activity, suggesting that Stellar users are less active. Fewer project updates may be affecting investor interest.

Overall, Stellar’s weakness reflects both technical selling and a quieter ecosystem. Without new developments or increased network use, XLM may continue to face pressure in the near term.

Price Action Shows Resistance to Recovery

Stellar continues to face resistance near $0.40. The Parabolic SAR indicates that the downward trend is still in place and a quick rebound is improbable.

XLM faces its next key support at $0.35, which was tested for the last time over a month ago. Falling to this level may lead to further selling pressure, whereas a recovery from $0.40 could open the way for $0.42 to $0.45, assuming investors regain confidence.

Stellar has experienced short rallies when the altcoin market briefly turned positive. Yet these gains have not lasted, highlighting the coin’s responsiveness to market sentiment. Right now, a mix of technical barriers and low buying interest is preventing Stellar from making a significant recovery.

Outlook for Stellar Holders

For Stellar investors, the near-term outlook appears difficult. With the CMF in negative territory, the RSI trending lower, and price action meeting resistance at key points, XLM continues to face selling pressure. A recovery is possible, but it will likely depend on renewed market confidence and broader support.

Traders should monitor support at $0.35 and resistance near $0.40 closely, as these levels could determine XLM’s short-term movement. Broader developments in the crypto market may also influence sentiment and create potential opportunities.