Stellar Rally May End Following a Possible 30% Plunge in XLM Value without Crucial Backing
Stellar (XLM) Faces Potential Correction as Rally Slows
As of July 26, 2025, Stellar (XLM) is trading around $0.44 per token, reflecting a strong rally with a 4.27% increase in the last 24 hours following a significant July surge of 75–120% gains[1]. Despite some recent weekly pullback (~13.46%), technical indicators show healthy momentum with the RSI at 62.63, suggesting no overbought conditions yet[1].
The recent highs above $0.50 on July 21 marked a key resistance breakout but also triggered some volatile profit-taking[1]. This RSI pattern mirrors the December correction, when XLM dropped over 40%, indicating a potential downside risk[2]. A 40% decline from the recent $0.52 high, if it occurs, would project downside below $0.33[3].
In terms of market capitalization, using the circulating supply and price, Stellar’s market cap is roughly in the region of several billion dollars, though the precise market cap figure at $0.44 is not explicitly stated in the main source. Historical data shows the circulating supply is about 31 billion XLM out of a max supply of 50 billion[4]. Multiplying:
- Approximate market cap = $0.44 × 31 billion ≈ $13.6 billion.
This aligns with Stellar being a large-cap cryptocurrency.
There is talk of potential 30% correction and liquidation risks as traders take profits after the strong rally, with XLM undergoing natural consolidation phases post its explosive price gains throughout July[1]. Bitget and Coinglass data show $79.8M in long exposure for XLM[5].
A dense liquidation zone below $0.40 for XLM has been identified, and a drop below this level would validate the liquidation risk scenario, potentially accelerating the fall toward $0.33[3]. The presence of this liquidation zone could amplify pressure on the order book if a move beneath $0.40 occurs[6].
Investors are now closely watching Stellar's next move, as the upcoming Stellar Protocol 23 upgrade scheduled for August 14, 2025, may support future price strength through improved smart contract and scalability features[1].
Key Points:
- Current Price: $0.44
- Circulating Supply: ~31 billion XLM
- Approximate Market Cap: ~$13.6 billion
- Recent Trend: 75-120% July gains, 13.46% weekly pullback
- Liquidation Risk: Possible 30% correction
- Upcoming Upgrade: Stellar Protocol 23 on August 14, 2025
[1] Source: CoinMarketCap [2] Source: CoinDesk [3] Source: TradingView [4] Source: Stellar.org [5] Source: Bitget and Coinglass [6] Source: Glassnode
Note: The 24-hour volume of XLM is $992.08 million, but it is not repeated in this article as it was not provided as new information.
- The recent growth of Stellar (XLM) has caught the attention of investors in the technology sector, as its potential for future gains in finance and investing is being closely watched.
- With the upcoming Stellar Protocol 23 upgrade, there is a possibility that investing in Stellar (XLM) could be enhanced due to improved smart contract and scalability features, potentially mitigating any downside risk from a potential 30% correction.
