Stellar ($XLM) Breaks Key Support – Is a Deeper Correction Ahead?

  • XLM breaks the trendline, triggering questions about possible price corrections.                                                                                                                                              
  • Stellar’s growing institutional adoption boosts network strength and long-term outlook.

Stellar (XLM) has dropped below a critical trendline, raising questions about the coin’s near-term outlook. The price had steadily followed this support since mid-March. Analysts are watching for signs of a deeper correction after the trendline failed to hold. Broader ecosystem developments could still influence price behavior.

XLM Breaks Structure After Trendline Support Fails

Crypto analyst Ali Martinez highlighted a key technical breakdown on March 28. According to his chart, XLM sliced through an ascending trendline that had acted as strong support for over two weeks. The coin trades around $0.2779, posting a 2.38% intraday loss.

Ali noted that this trendline had been tested several times during XLM’s recent upward move. It helped push the coin to the $0.29–$0.3 range. However, with this support breached, sentiment has shifted. Traders are now evaluating whether this signals a broader downtrend or a temporary dip.

Despite the breakdown, the $0.285 zone remains a critical level. A quick recovery above this region could invalidate the bearish signal. Analysts still project a possible retest of $0.29 to $0.3 per coin if the price rebounds.

Institutional Adoption Boosts Stellar’s Ecosystem Strength

Dune Analytics recently spotlighted Stellar’s growing presence in asset tokenization and payment. According to their data, Stellar powers $56 million in total value locked (TVL), handles 15% of all tokenized government securities and supports 70% of $FOBXX’s market cap.

Institutions are increasingly trusting the blockchain for real-world asset support and DeFi functions. This positions it as one of the leading decentralized networks designed for global payments, bridging traditional and digital finance.

Stellar Declares Network “Feature Complete”

CoinCryptoNews reported in February 2025 that the Stellar Development Foundation (SDF) announced the network is now “feature complete.” This marks the end of a 10-year development journey that now enables scalable DeFi, cross-border payments, and real-world asset tokenization.

SDF CEO Denelle Dixon emphasized the focus is now on scaling adoption. The Soroban smart contract platform offers developers a reliable environment for building compliant financial tools. Meanwhile, institutions like Franklin Templeton use Stellar to tokenize U.S. Treasuries, with $372.5 million of their $593 million fund now on the network.

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.