Stellar (XLM) is down more than 5% on Thursday, with its market capitalization dropping to $8 billion. XLM technical indicators are flashing strong bearish signals, suggesting continued downward momentum that could test critical support levels around $0.22.

While a reversal scenario remains possible with resistance targets at $0.27, $0.29, and $0.30, such an upside move would require a substantial shift in market sentiment.

XLM RSI Shows Sellers Are In Control

Stellar’s Relative Strength Index (RSI) has dropped sharply to 38.99, down from 59.54 just two days ago—signaling a notable shift in momentum.

The RSI is a widely used momentum oscillator that measures the speed and magnitude of recent price changes, typically ranging between 0 and 100.

Readings above 70 suggest overbought conditions, while levels below 30 indicate oversold territory. A reading between 30 and 50 often reflects bearish momentum but is not yet extreme enough to trigger an immediate reversal.

With Stellar’s RSI now below the key midpoint of 50 and approaching the oversold threshold, the current reading of 38.99 suggests that sellers are gaining control.

While it’s not yet in oversold territory, it does signal weakening buying pressure and increasing downside risk.

If the RSI continues to fall, XLM could face further price declines unless buyers step in soon to stabilize the trend and prevent a slide into more deeply oversold levels.

Stellar CMF Heavily Dropped Since April 1

Stellar’s Chaikin Money Flow (CMF) has plunged to -10, a sharp decline from 0.19 just two days ago, signaling a significant shift in capital flow dynamics.

The CMF is an indicator that measures the volume-weighted average of accumulation and distribution over a set period—essentially tracking whether money is flowing into or out of an asset.

Positive values suggest buying pressure and accumulation, while negative values point to selling pressure and capital outflow.

With XLM’s CMF now deep in negative territory at -10, it indicates that sellers are firmly in control and substantial capital is leaving the asset.

This level of negative flow can put downward pressure on price, especially if it aligns with other bearish technical signals. Unless buying volume returns to offset this outflow, XLM could continue to weaken in the near term.

Will Stellar Fall To Five-Month Lows?

Stellar price action presents concerning signals as EMA indicators point to a strong bearish trend with significant downside potential.

Technical analysis suggests this downward momentum could push XLM to test critical support around $0.22. It could breach this level and fall below the psychologically important $0.20 threshold—a price not seen since November 2024.

This technical deterioration warrants caution from traders and investors as selling pressure appears to be intensifying.

Conversely, a trend reversal scenario would require a substantial shift in market sentiment. Should bulls regain control, XLM could challenge the immediate resistance at $0.27, with further upside targets at $0.29 and the key $0.30 level.

However, this optimistic outlook faces considerable obstacles, as only a dramatic sentiment shift coupled with the emergence of a powerful uptrend would enable such a recovery.

Until clearer bullish signals manifest, the prevailing technical structure continues to favor the bearish case.

Solana (SOL) is under heavy pressure, with its price down more than 10% in the last 24 hours as bearish momentum intensifies across key indicators. The Ichimoku Cloud, BBTrend, and price structure all point to continued downside risk, with SOL now hovering dangerously close to critical support levels.

Technical signals show sellers firmly in control, while the widening gap from resistance zones makes a near-term recovery increasingly difficult.

Solana’s Ichimoku Cloud chart is currently flashing strong bearish signals. The price has sharply broken below both the Tenkan-sen (blue line) and Kijun-sen (red line), confirming a clear rejection of short-term support levels.

Both of these lines are now angled downward, reinforcing the view that bearish momentum is gaining strength.

The sharp distance between the latest candles and the cloud further suggests that any recovery would face significant resistance ahead.

Looking at the Kumo (cloud) itself, the red cloud projected forward is thick and sloping downward, indicating that bearish pressure is expected to persist in the coming sessions.

The price is well below the cloud, which typically means the asset is in a strong downtrend.

For Solana to reverse this trend, it would need to reclaim the Tenkan-sen and Kijun-sen and push decisively through the entire cloud structure—an outcome that looks unlikely in the short term, given the current momentum and cloud formation.

Solana’s BBTrend Signals Prolonged Bearish Momentum

Solana’s BBTrend indicator currently sits at -6, having remained in negative territory for over five consecutive days. Just two days ago, it hit a bearish peak of -12.72, showing the strength of the recent downtrend.

Although it has slightly recovered from that low, the sustained negative reading signals that selling pressure remains firmly in control and that the bearish momentum hasn’t yet been reversed.

The BBTrend (Bollinger Band Trend) measures the strength and direction of a trend using Bollinger Bands. Positive values suggest bullish conditions and upward momentum, while negative values indicate bearish trends.

Generally, values beyond 5 are considered strong trend signals. With Solana’s BBTrend still well below -5, it implies that downside risk remains elevated.

Unless a sharp shift in momentum occurs, this persistent bearish reading may continue to weigh on SOL’s price in the near term.

Solana Eyes $112 Support as Bears Test February Lows

Solana’s price has broken below the key $115 level, and the next major support lies around $112. A confirmed move below this threshold could trigger further downside. That could potentially push the price under $110 for the first time since February 2024.

The recent momentum and strong bearish indicators suggest sellers remain in control, increasing the likelihood of testing these lower support levels in the near term.

However, if Solana manages to stabilize and reverse its current trajectory, a rebound toward the $120 resistance level could follow.

Breaking above that would be the first sign of recovery, and if bullish momentum accelerates, SOL price could aim for higher targets at $131 and $136.

As traditional markets show clear signs of an impending recession, the crypto space is not immune from damage. Liquidations are surging as the overall crypto market cap mirrors declines in the stock market.

Even though the source of these problems is localized to the US, the damage will have global implications. Traders are advised to prepare for a sustained period of trouble.

How Will A Recession Impact Crypto?

Several economic experts have warned that the US market is poised for an impending recession. For all we know, it’s already here.

Since Donald Trump announced his Liberation Day tariffs, all financial markets have taken a real hit. The overall crypto market cap is down nearly 8%, and liquidations in the last 24 hours exceeded $500 million.

A few other key indicators show a similar trend. In late February, the Crypto Fear and Greed Index was at “Extreme Fear.” It recovered in March but fell back down to this category today.

Similarly, checkers adjacent to crypto, such as Polymarket, began predicting that a recession is more likely than not.

Although the crypto industry is closely tied to President Trump’s administration, it is not the driving force behind these recession fears. Indeed, crypto actually seems to be tailing TradFi markets at the moment.

The Dow dropped 1600 points today, and the NASDAQ and S&P 500 both had their worst single-day drops since at least 2020.

Amidst all these recession fears, it’s been hard to identify an upside for crypto. Bitcoin briefly looked steady, but it fell more than 5% in the last 24 hours.

This doesn’t necessarily reflect its status as a secure store of value, as gold also looked steady before crumbling. To be fair, though, gold has only fallen 1.2% today.

In this environment, crypto enthusiasts worldwide should consider preparing for a recession. Trump’s proposed tariffs dramatically exceeded the worst expectations, and the resultant crisis is centered around the US.

Overall, current projections show that the crypto market will mirror the stock market to some extent. If the Nasdaq and S&P 500 fall further, the implications for risk assets could worsen.