⏰ Act Early, Profit Big!
Be among the first to access the newest altcoins. Don't miss out, click now!

XLM’s Price Trends: Historical Declines Suggest Potential Recovery Amid Volatility

  • The recent volatility of Stellar (XLM) reflects historical patterns, with sharp price adjustments following significant bubble risk signals.

  • Despite turbulent periods, experts suggest that price stabilization above key thresholds could indicate potential bullish behavior.

  • “Every oscillator spike above 0.5 has preceded substantial declines,” noted a source from COINOTAG, highlighting a critical area of concern for investors.

This article examines Stellar (XLM) price trends, liquidity zones, historical drawdowns, and potential bullish signals for investors.

XLM’s Historical Price Trends: Volatility Analysis

Stellar’s performance has been marked by extreme fluctuations, particularly reflected in its drawdown history. Notably, after peaking at $0.9 in 2018, XLM experienced a staggering 90% decline to $0.1 by 2019, showcasing the asset’s high volatility and bearish trend.

Understanding the Bubble Risk Oscillator

The Bubble Risk Oscillator serves as an essential tool for tracking XLM’s vulnerability to price drops. The oscillator’s movements indicate periods of increased bubble risk, notably spiking above 0.5 on occasions in 2017, 2018, 2021, and again in 2025. Each of these spikes has historically led to significant price declines for XLM.

Analyzing Percentage Drawdowns from ATH

The recurring theme of severe percentage drawdowns from all-time highs (ATH) reinforces concerns for XLM investors. Following the high in 2017, XLM’s price declined by over 90%, a pattern echoing in subsequent years. In 2021, a notable peak at $0.7 foreshadowed an 80% drop.

XLM Percentage Drawdown from ATH

Source: IntoTheBlock

Liquidity Risks and Strategic Entry Points

The XLM liquidation heatmap indicates vital liquidity levels, with fluctuations observed between $0.262026 and $0.289401. The current market price is notably at $0.263026, while higher liquidation risks mount around $0.28, creating potential pitfalls for unsuspecting investors.

XLM Liquidation Heatmap

Source: Coinglass

Conclusion

In summary, XLM’s historical price performance underscores its volatility and the potential risks associated with investing in the asset. Observing the oscillator readings and liquidity zones can guide investors toward more informed decisions. A sustained price movement above $0.4 could signal a departure from historical downtrends, providing a crucial opportunity for traders to consider.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Ethereum New Buyers Drive On-Chain Activity Surge Amid Strong Long-Term Holder Accumulation

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Satoshi-Era Whales Selling BTC Ignite Debate on Bitcoin’s Future Ideology

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Solana Leads with 28.18 Million Active Addresses as Ethereum Tops Growth and BNB Chain Dominates DEX Trading Volume

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ethereum PoS Network Faces Withdrawal Delays as Queue Surges to 699,800 ETH

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

$VRA added to Binance alpha projects

$VRA added to Binance alpha projects #VRA

Divine Research Uses USDC for Unbacked Loans Verified by World ID, Targeting Underserved Borrowers

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

XRP Shows Signs of Cooling After Rally, Volume Decline May Indicate Temporary Pause Not Reversal

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ethereum Golden Cross Against Bitcoin Signals Possible Start of Altcoin Season Amid Institutional Interest

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Solana May Lead in Transaction Volume as Ethereum Shows Potential Growth in Active Addresses

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Dominance Nears Key Resistance, Potential Altcoin Rally Could Follow Capital Rotation

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Ethereum Shows Signs of Accumulation Amid Potential Leveraged Dip Before Possible Breakout

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Stellar (XLM) Could Potentially Break Out Amid Predictions of Widespread Crypto Decline, Says Analyst

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

XRP Price Could Reach $4 Amid ETF Speculation and Market Shifts in Cryptocurrency Sector

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img