Stellar Price Analysis: XLM Battles to Hold $0.44 Support Zone

• RSI drops on daily and 4H charts, signaling fading momentum.
• Derivatives data shows rising open interest and bullish funding rates.
• $0.44 zone remains pivotal for bullish continuation or deeper correction.

Stellar (XLM) is attempting to stabilize after a volatile few sessions that saw the asset fall sharply from recent highs. The price is currently holding above the crucial $0.44 support zone, a level viewed by market analyst Crypto Tony as essential for bullish continuation. This price point has now emerged as the dividing line between continued upward momentum and potential correction.

After months of tight consolidation through 2023 and much of 2024, XLM staged a powerful breakout in early 2025, briefly climbing past the $0.50 mark to hit multi-year highs. While the rally marked a bullish structural shift, price has since retreated, returning to test the $0.44 level, which now acts as key support.

Stellar Analysis on 1-Day Timeframe: RSI Cools Off, Pullback Intensifies

On the daily chart, Stellar (XLM/USDT) is trading at $0.4367, reflecting a sharp 7.34% daily decline. The strong pullback follows a recent rejection from the $0.50 level, which acted as a resistance ceiling after the early July breakout. Volume has surged to 427.58K, suggesting aggressive selling activity during this correction phase. Despite the pullback, the overall trend retains a bullish structure, though its momentum has notably weakened.

The Relative Strength Index (RSI) has cooled to 63.73 from an earlier overbought peak of 78.92. This RSI drop reflects a shift from euphoric buying to a more neutral sentiment.

 If bulls fail to hold the $0.43–$0.44 support range, the correction may deepen. Price structure remains intact for now, but continued selling below this range would invalidate the recent rally’s strength and shift momentum in favor of bears.

Stellar Analysis on the 4-Hour Timeframe: Bearish Momentum Escalates

Stellar (XLM/USDT) has slipped to $0.4396 on the 4-hour chart, posting a 4.62% decline in the latest session. The asset has entered a short-term downtrend following a stalled rally, with price action dipping below $0.45. 

The RSI has dropped to 37.33, showing clear bearish divergence and continued lower highs a sign of waning demand. Trading volume sits at 242.47K, reflecting reduced interest during the decline.

The $0.44 support level is under immediate threat, and any breakdown below this zone could trigger a stronger downside extension. For bulls to regain control, they must decisively defend this price floor and reverse current bearish momentum.

Derivatives Data Signals Bullish Bias Despite Spot Weakness

XLM’s derivatives data presents a contrasting picture to spot action. Coinglass data shows that the OI-weighted funding rate has flipped positive, indicating a dominance of long positions. 

Open interest has surged dramatically from under $100M to nearly $600M as price rose from $0.20 to over $0.50. This uptick in both metrics signals growing capital inflow and elevated trader confidence. 

If the bullish trend in derivatives continues, this level may provide the support needed for a renewed price push.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.