Stellar coin (XLM) dropped 14% in the last 24 hours, making it the biggest loser among major cryptocurrencies today. The XLM price fell to $0.2319 as traders took profits after Stellar’s May 27 partnership with the Depository Trust & Clearing Corporation. That deal, which aims to tokenize trillions in custodied assets, nearly doubled the price of Stellar crypto in just two weeks.
Profit-taking after such a sharp rally is often messy, and BanklessTimes earlier noted that the coin was overbought after its late-month surge, and now the pullback has started.
XLM Price Falls as DTCC Profit-Taking Meets a Bitcoin-Led Selloff
This drop was not Stellar’s problem alone. On Monday, Bitcoin (BTC) dropped 4.14% to below $71,000 for the first time in seven weeks, and the total crypto market cap fell by 2.66%. About $450 million in Bitcoin positions were liquidated, triggering further selling in altcoins and pushing XLM’s losses beyond its own news.
Stellar, the 14th-largest token, still lost more value than its peers. Its drop was steeper than Venice Token’s 9.71%, Terra Classic’s 6.54%, and Hedera’s 5.51%.
The recent peak helps explain the drop. XLM price peaked near $0.297 on May 31 before reversing, and 24-hour volume came in 24.88% lower at $1.14 billion, running at 14.77% of the $7.81 billion market cap.
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Leverage also drained fast. Data shows derivatives volume fell 31.68% to $1.64 billion and open interest dropped 15.83% to $320.94 million, rolling off the late-May spike toward $360 million that the DTCC headline sparked.
Stellar Coin Price Prediction: TD Sequential Sell Signal Suggests $0.20 Target
Crypto analyst Ali Charts sees this setup as a warning. The daily TD Sequential, which signaled a buy before Stellar crypto’s 107% run from $0.14 to $0.30, has now switched to a sell signal. He thinks there is room for the XLM price to fall toward $0.20, suggesting the same indicator that called the bottom is now signaling a top.
The $0.20 target, about 14% below the current price, is based on the sharp rally that left few buyers to support the price on the way down. The sell signal from the indicator is important because it caught the trend reversal. Since $0.20 is just below the 7-day SMA at $0.215, a clear break below that level could send the price straight to $0.20.
Meanwhile, resistance still caps the bounce case. The 50-day SMA at $0.2625 and the 100-day SMA at $0.2541 both signal a sell, and bulls need to regain these levels. Still, 12 out of 15 moving averages, including EMAs from 10 to 200 periods, most SMAs, the Hull, and volume-weighted averages, are between about $0.17 and $0.23, helping keep short-term support steady for now.
If Stellar coin price stays above $0.215, the cooldown looks healthy. But if it drops below that level, Ali Charts’ $0.20 target could come into play.
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