In the past 24 hours, Stellar (XLM) has experienced a significant price drop, leading to reduced trading volumes and the asset's traded value.
Negative Price Movement and Buyer Pullback
In the past 24 hours, Stellar's price dropped significantly, resulting in a 48.03% decrease in trading volume to $78.6 million. This drop may be associated with XLM's failure to maintain its recovery levels in the crypto space. Currently, the asset is trading at $0.2379, which is 0.88% lower than in the last 24 hours.
Reasons for Stellar's Decline
A primary reason for Stellar’s negative development is the dominance of Bitcoin (BTC) in the crypto market, currently at 64.6%. This has diverted liquidity from altcoins like Stellar, with most investors favoring Bitcoin due to its perceived lower risk. These factors may have contributed to the significant pullback seen in XLM.
Outlook and Recovery Opportunities for XLM
Technical indicators are pointing towards potential consolidation for XLM, and an increase in trading volume may support the asset's recovery to higher levels. If a successful breakout occurs, Stellar may reach the $0.26 and $0.30 levels. Investors are hopeful that institutional adoption of the asset could lead to new use cases and an increase in value. For instance, PayPal is expected to launch on the Stellar network following necessary regulatory approvals.
The price situation of Stellar (XLM) underlines the current challenges the asset faces amid Bitcoin's dominance. However, there is hope for recovery if certain conditions are met.
