XLM's Price Plummets 90% After Oscillator Peaks

Stellar's XLM has been in a prolonged downtrend, marked by significant price fluctuations following peaks in its bubble risk oscillator. The Short-Term Bubble Risk chart tracks price movements within its oscillator levels, which range from 0 to 1. Notable spikes above 0.5 occurred in 2017, 2018, 2021, and 2025, each correlating with substantial price drops. In 2017, XLM peaked at $0.9 but plummeted to $0.1 by 2019, a 90% decline from its 2018 all-time high. A similar trend was observed in 2021, when XLM reached $0.7 before dropping to $0.1 by 2023. In 2025, XLM briefly surged to $0.4 before falling back to $0.1, aligning with the oscillator’s peak at 0.808, indicating strong bearish momentum.

Historically, each oscillator spike above 0.5 has preceded a substantial decline, suggesting continued volatility. Despite these historical downtrends, a drop in the oscillator below 0.5 with stability could signal a reversal. If XLM maintains a price above $0.4, it may break free from its pattern of steep declines, potentially entering a bullish phase. The XLM Percentage Drawdown from ATH chart highlighted the coin’s price history and significant declines. After peaking at $0.9 in 2018, XLM dropped over 90% to $0.1 by 2019. A similar peak at $0.7 in 2021 led to an 80% drawdown by 2022. In 2025, XLM briefly hit $0.4 before falling to $0.1, registering an 84.5% decline. The consistent pattern of 80% to 90% drawdowns underscores the asset’s volatility and bearish tendencies.

Therefore, a sustained price above $0.4, combined with a drawdown of less than 50%, may indicate a bullish reversal. If XLM stabilizes with reduced volatility, it could shift away from its historical trend of steep declines. XLM’s liquidation heatmap reveals key liquidity zones and price fluctuations between $0.262026 and $0.289401. The press time price was $0.263026, with significant liquidation leverage above $0.28. Dense clusters at $0.285 and $0.289401 highlighted high liquidation risks if prices rise. Alternatively, lower liquidity pools exist at $0.27 and $0.265, with a relatively safer entry point near $0.262026, where liquidation pressure is minimal. Thus, investors seeking lower liquidation risk may consider entering between $0.262026 and $0.265, avoiding positions above $0.28. A breakout beyond $0.289401 with reduced liquidation pressure could signal a bullish trend, making entries above $0.29 more viable for momentum traders.

Finally, XLM’s historical trends indicate continued volatility, with sharp price corrections following oscillator peaks. However, a stabilization in drawdowns and reduced liquidation pressure could offer a path for recovery. According to the analyst's forecast, if XLM maintains a price above $0.4, it may break free from its pattern of steep declines, potentially entering a bullish phase. The consistent pattern of 80% to 90% drawdowns underscores the asset’s volatility and bearish tendencies. Therefore, a sustained price above $0.4, combined with a drawdown of less than 50%, may indicate a bullish reversal. If XLM stabilizes with reduced volatility, it could shift away from its historical trend of steep declines. XLM’s liquidation heatmap reveals key liquidity zones and price fluctuations between $0.262026 and $0.289401. The press time price was $0.263026, with significant liquidation leverage above $0.28. Dense clusters at $0.285 and $0.289401 highlighted high liquidation risks if prices rise. Alternatively, lower liquidity pools exist at $0.27 and $0.265, with a relatively safer entry point near $0.262026, where liquidation pressure is minimal. Thus, investors seeking lower liquidation risk may consider entering between $0.262026 and $0.265, avoiding positions above $0.28. A breakout beyond $0.289401 with reduced liquidation pressure could signal a bullish trend, making entries above $0.29 more viable for momentum traders.