Stellar Coin Price Tumbles After Sharp Rally, Analyst Predicts $0.20 Target

The recent partnership between Stellar and the Depository Trust & Clearing Corporation (DTCC) sparked a significant rally in the price of Stellar Coin, causing it to nearly double in just two weeks. However, this rapid increase has led to profit-taking by traders, resulting in a 14% drop in XLM's value over the last 24 hours.

This decline was not isolated to Stellar, as the entire cryptocurrency market suffered a loss. Bitcoin dropped 4.14% to below $71,000 for the first time in seven weeks, and the total crypto market cap fell by 2.66%. This led to selling pressure across altcoins, including XLM.

The drop in XLM's price was steeper than its peers, with Venice Token, Terra Classic, and Hedera experiencing losses of 9.71%, 6.54%, and 5.51%, respectively. The recent peak near $0.297 on May 31 may have contributed to the drop, as well as a decline in derivatives volume and open interest.

A crypto analyst has identified a TD Sequential sell signal that suggests XLM's price could fall towards $0.20. This indicator previously signaled a buy before Stellar's significant run-up from $0.14 to $0.30. If the price stays above $0.215, the cooldown may be healthy, but if it drops below this level, the analyst's prediction could become more likely.