Stellar's September Trap: Why XLM Price Might Fall Amid Rising Stablecoin Dominance

Stellar (XLM) price may experience a temporary dip in September due to a recurring pattern known as the "September trap," where altcoins follow Bitcoin's lead. Historically, XLM has fallen in September, but rebounded in October or later months. The current price of XLM is around $0.35, and resistance at $0.51 has been difficult to clear. Altcoin Doctor believes that the September trap is more about psychology than fundamentals, and that XLM may follow the script in 2025.

Stellar (XLM) may experience a temporary dip in September, according to the "September trap" pattern observed in previous years. This recurring phenomenon, where altcoins follow Bitcoin's lead, could see XLM's price drop before a potential rebound in October or later months.

As of September 2, 2025, XLM is trading around $0.35, ranked 15th overall with a market cap near $11.23 billion. The resistance level at $0.51 has been difficult to clear since 2024. Altcoin Doctor, a crypto analyst, believes that the September trap is more about psychology than fundamentals, and XLM may follow the script in 2025.

The September trap often leads traders to misread dips, selling too early before the rebound comes. In 2021, XLM fell by 20%, and in 2022, it gained only 10% by month's end. In 2023, it dropped by 1.5%, a small move but enough to shake confidence. The major breakout that took XLM from $0.08 to $0.10 came in November, showing that real gains usually follow after the dip [1].

Altcoin Doctor notes that the September trap is more about psychology than fundamentals. Red candles in early September often convince traders that a prolonged downturn is ahead, leading to panic-driven selling. However, history shows that these levels often serve as setups for rallies into October and November.

In 2025, the rising dominance of stablecoins such as USDT signals pressure on the broader crypto market, which could weigh on XLM in early September. Despite this, Altcoin Doctor stresses that this does not mean Stellar is turning bearish for the long haul. If history is any guide, September weakness may simply be the setup before the next push higher.

Investors should remain vigilant and avoid panic-driven selling during the September dip. Keeping a long-term perspective and understanding the historical pattern of XLM's price action can help navigate this period.

References:
[1] https://coinmarketcap.com/community/articles/68afaec1d90743168358e860/
[2] https://www.ainvest.com/news/september-crypto-rally-market-primed-breakout-2509/
[3] https://captainaltcoin.com/stellar-price-warning-is-xlm-about-to-fall-into-the-september-trap-again/