Stellar price traded lower as top altcoins mirrored the movement of Bitcoin on Monday, and a slice through $0.22 threatened further declines toward the critical $0.20 support area.
As selling pressure mounts, drawing fresh bearish bets across crypto exchanges, the broader market caution could allow for a deeper correction.
Currently, bears dominate sentiment, fueled by technical breakdowns and fading on-chain conviction.
Stellar’s price has seen $0.20 emerge as a multi-month demand zone in recent months.
Recently, the altcoin trended to above $0.24 before falling to support at $0.22.
An attempt to recoup losses ended around $0.23, leaving the altcoin sliding to under $0.21 on Jan. 19 as Bitcoin plunged to under $93,000.
The repeated rejections, with a marked downtrend, might erode buyer resolve and allow for a plunge to $0.20 or below.
In favour of bears are derivatives that currently scream caution. Open interest has dropped to $131 million, with long-to-short ratios signaling more shorts piling in. This setup emboldens bears eyeing sub-$0.20 targets. BTC correlation will also matter.
But the analyst added:
Bears thrive on clear chart failures and XLM trades below both its 50-day ($0.227) and 200-day ($0.324) moving averages.
Prices have accelerated lower since October 10, 2025, forming a bearish structure with RSI retreating to under 50 following a brief spike to the overbought line.
Stellar price chart by TradingView
The price rejections at previous support zones mean $0.25 and $0.22 now act as overhead resistance.
Meanwhile, a daily close below $0.20 could accelerate the dump toward multi-year lows of $0.18 and $0.14.
On the upside, Stellar will target $0.32 and $0.41 supply zones. A daily close above $0.23 will validate this thesis, opening up conviction trades.
The last time XLM price went parabolic, bulls exploded from lows of $0.10 to above $0.63 in November 2024, and again from lows of $0.24 to peak at $0.52 in July 2025.
Gains came amid spikes for XRP, an altcoin related to XLM in terms of its product goals.
The Ripple token reached highs of $3.42 in July, outpacing the broader market amid major catalysts such as regulatory milestones and the launch of the RLUSD stablecoin.
The post Stellar price forecast: XLM risks breakdown below $0.22 as bears target $0.20 support appeared first on CoinJournal.

