• Stellar price dropped sharply as altcoins shed recent gains.
• Broader market conditions, with Bitcoin dipping towards support, are a critical indicator.
• XLM bulls could see stagnation if the price drops to $0.20 or lower.

Stellar price traded lower as top altcoins mirrored the movement of Bitcoin on Monday, and a slice through $0.22 threatened further declines toward the critical $0.20 support area.

As selling pressure mounts, drawing fresh bearish bets across crypto exchanges, the broader market caution could allow for a deeper correction.

Currently, bears dominate sentiment, fueled by technical breakdowns and fading on-chain conviction.

XLM price nears multi-month support

Stellar’s price has seen $0.20 emerge as a multi-month demand zone in recent months.

Recently, the altcoin trended to above $0.24 before falling to support at $0.22.

An attempt to recoup losses ended around $0.23, leaving the altcoin sliding to under $0.21 on Jan. 19 as Bitcoin plunged to under $93,000.

The repeated rejections, with a marked downtrend, might erode buyer resolve and allow for a plunge to $0.20 or below.

In favour of bears are derivatives that currently scream caution. Open interest has dropped to $131 million, with long-to-short ratios signaling more shorts piling in. This setup emboldens bears eyeing sub-$0.20 targets. BTC correlation will also matter.

“Gold just hit a new all-time high of $4,600. It’s now headed towards $5,000, a major 4.618 Fibonacci extension resistance level,” crypto analyst Lark Davis noted on X.

But the analyst added:

“But the faster gold blasts through to $5,000, the quicker we could see meaningful capital rotation out of precious metals and into Bitcoin.”

Stellar price technical outlook

Bears thrive on clear chart failures and XLM trades below both its 50-day ($0.227) and 200-day ($0.324) moving averages.

Prices have accelerated lower since October 10, 2025, forming a bearish structure with RSI retreating to under 50 following a brief spike to the overbought line.

The price rejections at previous support zones mean $0.25 and $0.22 now act as overhead resistance.

Meanwhile, a daily close below $0.20 could accelerate the dump toward multi-year lows of $0.18 and $0.14.

On the upside, Stellar will target $0.32 and $0.41 supply zones. A daily close above $0.23 will validate this thesis, opening up conviction trades.

The last time XLM price went parabolic, bulls exploded from lows of $0.10 to above $0.63 in November 2024, and again from lows of $0.24 to peak at $0.52 in July 2025.

Gains came amid spikes for XRP, an altcoin related to XLM in terms of its product goals.

The Ripple token reached highs of $3.42 in July, outpacing the broader market amid major catalysts such as regulatory milestones and the launch of the RLUSD stablecoin.

The post Stellar price forecast: XLM risks breakdown below $0.22 as bears target $0.20 support appeared first on CoinJournal.

Key takeaways

• XLM is down by less than 1% and is trading below $0.22.
• The coin could retest the $0.20 support level if the bearish trend continues. 

The cryptocurrency market is having a bullish Christmas as Bitcoin and other major cryptocurrencies are in the green. Bitcoin is trading above $87k after dipping below $86k a few hours ago. 

However, some major altcoins, including Stellar’s XLM, are still in the red despite the current market conditions. XLM is trading below $0.22 at press time after failing to close above the key resistance earlier this week.

Bearish momentum continues to grow stronger, with Open Interest (OI) and short bets rising. If the bearish momentum continues, XLM could face further selling pressure in the near term. 

XLM derivatives data suggest bearish sentiment

The primary catalyst behind XLM’s bearish performance is the derivatives and on-chain data. According to CoinGlass, XLM’s futures Open Interest (OI) increased to $112 million in the last 24 hours, up from the $30 million recorded the previous day. 

However, the increasing OI hasn’t reflected in the coin’s performance as it continues to trade below a significant support level. 

Furthermore, Coinglass’s long-to-short ratio for XLM reads 0.91, the highest level in nearly a month. This suggests that despite the surging OI, the bearish sentiment in the market remains, with traders betting on the XLM price rising. 

XLM could dip below $0.20

The XLM/USD 4-hour chart is bearish and efficient as the coin has underperformed in recent days. At press time, XLM is trading at $0.21 and could record further losses in the near term. 

If the bearish trend continues, XLM could retest the December 18 low of $0.20. A close below this psychological level could extend the drop toward the yearly low of $0.16, set on October 10.

The RSI on the 4-hour chart reads 43, below the neutral 50 level, indicating bearish momentum is gaining traction. The Moving Average Convergence Divergence (MACD) lines are also converging, indicating indecision among traders.

On the flip side, if XLM recovers, it could rally towards the key resistance level at $0.22 over the next few hours.

The post Stellar price forecast: XLM stays below $0.22 as bearish momentum remains appeared first on CoinJournal.