Stellar (XLM) Upgrade is Complete, But Why Did it Fall? ... $0.1814 is the Watershed

▲ Stellar Lumens (XLM) ©

Although Stellar (XLM) completed its Protocol 28 upgrade, its price actually fell slightly. After the upgrade expectations were largely reflected and in the absence of new short-term catalysts, trading volume decreased by over 37%, leading to an analysis that it has entered a consolidation phase around $0.183.

According to cryptocurrency market data aggregator CoinMarketCap on September 18 (local time), Stellar traded at $0.183, down 0.83% over 24 hours, showing a weaker performance than Bitcoin (BTC), which remained flat. Stellar activated Protocol 28, which includes smart contract upgrades and improvements to the consensus mechanism, on September 17, but the price reaction was limited. The media analyzed that this upgrade was perceived more as a long-term network infrastructure improvement factor rather than a short-term price catalyst, leading to profit-taking and a wait-and-see attitude.

There is also a strong sentiment to confirm the actual effects of Protocol 28. In the market, the key factor was how much network activity and developer adoption would expand after the upgrade. In particular, sustained transaction throughput and an increase in Total Value Locked (TVL) were presented as key indicators, with the current TVL recorded at approximately $294 million.

Trading activity also slowed down. XLM's 24-hour trading volume was reported at $150.6 million, a decrease of 37.58%, indicating a lack of aggressive buying pressure. The price is hovering just below the 30-day Simple Moving Average (SMA) of $0.18339, facing short-term resistance. The Moving Average Convergence Divergence (MACD) histogram also showed a slight negative value, suggesting weakening upward momentum. The media assessed this decline as a correction occurring within a narrow price range rather than strong selling pressure.

In the short term, $0.1814, where the 7-day Simple Moving Average is located, is a key support level. If buying pressure defends this price level, there is a possibility of retesting the recent high of $0.1863. Conversely, if it breaks below the 61.8% Fibonacci retracement level of $0.1798, it could fall to the next support level of $0.1741. An analysis suggests that recovering $0.184 on a daily closing basis could nullify short-term bearish pressure.

Ultimately, Stellar's next direction depends on whether Protocol 28 actually leads to network growth. While the upgrade itself provides a positive foundation, there is a lack of new immediate catalysts to drive up the price. The media cited the sustainability of the $0.1814 support, along with increased on-chain activity, developer-related announcements, and a recovery in trading volume, as key variables to determine XLM's potential for a rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*