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Stellar (XLM) has experienced a significant pullback in price over the past 24 hours, resulting in a decline in trading volume. According to CoinMarketCap data, within this time frame, volume has dipped by 48.03% to $78.6 million.
The massive pullback might have been triggered by XLM’s inability to sustain its recovery move in the crypto space. Notably, Stellar has experienced significant price fluctuations over the last 30 days.
The asset has shed 10.57% of its value during this period, as investors anticipated a shift in momentum.
However, the recent rebound is fading. XLM’s value soared to a peak of $0.2406 but suffered rejection afterward, resulting in a downward price movement. As of this writing, Stellar was trading at $0.2379, representing a 0.88% decline over the last 24 hours.
Several factors contributed to the bearish development of Stellar. A key challenge is the prevailing dominance of Bitcoin (BTC) in the cryptocurrency market, currently at 64.6%. This has diverted liquidity from altcoins, such as Stellar.
Many investors are favoring Bitcoin over other assets that they consider riskier, hence the caution. This might have triggered the huge pullback seen by investors in XLM.
With technical indicators signaling consolidation for XLM, an increase in volume could support its rebound to a higher level. The asset experienced a delayed golden cross, despite a general market rebound. If it finally breaks out, it might push it toward the $0.26 and $0.30 zones.
Stellar holders hope that the institutional adoption of the asset will spark more use cases and an increase in value. For instance, PayPal is set to launch on the Stellar network as soon as the New York State Department of Financial Services grants its regulatory approval.
