XLM's 13.5% Pullback Looks Far Worse Than The Weekly Chart Says

Murtuza Merchant
Murtuza Merchantpage_time_hoursAgo
Stellar forms inverse head and shoulders pattern as RWA value approaches $1 billion milestone (Image: Shutterstock)
Stellar forms inverse head and shoulders pattern as RWA value approaches $1 billion milestone (Image: Shutterstock)

Stellar (XLM) slid 13.5% from its $0.2228 peak to $0.1926 on Monday, retesting an August breakout base as tokenized assets on the network topped $3 billion.

Key Points:

  • XLM fell 13.5% from a $0.2228 high, returning to the $0.1874 to $0.1957 zone where the August breakout began.
  • The token closed the prior week up 22.33%, meaning the slide unwound part of a rally rather than reversing a trend.
  • Tokenized real-world assets on Stellar reached $3.05 billion in the second quarter, roughly four times the pace of the broader market.

XLM Price Retests August Breakout Base

The decline carried XLM back into the $0.1874 to $0.1957 band where buyers first took control this month, according to chart work published Monday. It also slipped beneath the 23.6% Fibonacci retracement at $0.1957, which had capped earlier attempts to push higher.

Selling volume climbed as the move extended, and a run of large red candles erased roughly two thirds of the gains from the August advance.

Four-hour candle bodies have since narrowed, which traders read as fading pressure rather than a return of buyers. The RSI has cooled to 53.23, while a bearish MACD crossover leaves near-term momentum in the hands of sellers for now.

A four-hour close below $0.1874 would break the base and shift attention toward $0.1790 and then $0.1655, while a recovery of $0.1957 would put the $0.2051 midpoint back within reach.

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Stellar RWA Growth Draws Institutional Money

The pullback lands against a fundamentals backdrop that has strengthened through the year. Stellar reported tokenized real-world assets of $3.05 billion at the close of the second quarter, up from $1 billion in January and $2 billion in April. Growth spanned Treasuries, sovereign bond funds, money market funds, tokenized credit and gold, spreading the network exposure across several issuers, asset classes and jurisdictions rather than one concentrated product.

The wider tokenization market grew about 50% over that stretch, roughly a quarter of Stellar's pace, while stablecoin transfer volume reached a record $11.4 billion for a 72% quarterly gain. The Depository Trust & Clearing Corporation, which oversees more than $114 trillion in U.S. capital markets, has also picked Stellar as an early public blockchain for tokenization, with a wider launch set for the first half of 2027.

XLM Price Swings Over Recent Weeks

The 13.5% drop looks steeper in isolation than in context. XLM closed the prior week up 22.33% at $0.19111, its strongest weekly stretch in months.

That move tracked a 40.94% surge in XRP (XRP), which climbed on regulatory developments in Washington that lifted the older payment-focused networks together.

The advance started from a $0.15232 low and followed months of range-bound trade under $0.20, with price data still showing XLM up about 23% over seven days on Monday. Analysts point to the $0.217 to $0.230 band as the zone bulls must clear before a larger move develops, with a validator vote on the Protocol 28 upgrade due in mid-September.

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Murtuza Merchant

Murtuza is a seasoned finance journalist with extensive experience covering cryptocurrencies and blockchain technology. He has contributed to Benzinga and Cointelegraph, among other publications, reporting on emerging trends, the regulatory landscape, and more. Find him at @murtuza_merc on Twitter and mmerchant001 on Telegram. Disclosure: Murtuza holds ATOM, AKT, TIA, INJ, and OSMO.

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