XLM Price Rebounds 13% After Liquidity Sweep as Stellar Trust Narrative Returns
Stellar’s native token, XLM, has recovered 13% from its recent lows, climbing back above $0.11 after a sharp liquidity sweep triggered a wave of buying pressure. The move has renewed attention on the Stellar trust narrative, as on-chain data suggests accumulation from larger wallet cohorts.
According to market data from CoinGecko, XLM touched a low of $0.098 on Tuesday before reversing course. The recovery followed a sweep of liquidity below the $0.10 support level — a classic market structure move that often precedes a rebound when buy orders cluster beneath visible support.
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Liquidity Sweep and Market Structure
The price action over the past 48 hours shows a clear liquidity grab. XLM dipped briefly below the psychologically significant $0.10 mark, triggering stop-losses and liquidating leveraged short positions, before reversing sharply upward. Such moves are common in low-liquidity environments and often signal that larger players are absorbing sell-side pressure.
“The sweep below $0.10 looks like a deliberate hunt for liquidity before a move higher,” one pseudonymous analyst on X noted. “Order book data showed a cluster of buy orders just below that level, and once they were filled, the price snapped back quickly.”
Also read: XRP and XLM Prices Slide as ETF Outflows and Long Liquidations Shake Confidence
XLM is now trading at $0.112, up 13% from the weekly low, though still down roughly 15% over the past month against a broader market correction.
Stellar Trust Narrative Resurfaces
The recovery comes as the Stellar Development Foundation continues to push its cross-border payment and tokenization initiatives. Recent partnerships with financial institutions in emerging markets have reinforced the network’s utility narrative, which some traders argue is undervalued relative to other layer-1 protocols.
“Stellar has a clear use case in remittances and asset tokenization,” said Ryan Watkins, senior analyst at Messari. “The network processes millions of transactions per month, and the ecosystem is growing. The current price action may reflect a reassessment of that fundamental value.”
On-chain data from StellarExpert shows a rise in active accounts and transaction volume over the past week, suggesting that network usage is not declining despite the broader market downturn.
Broader Market Context
XLM’s bounce mirrors a tentative recovery across the altcoin market, with Bitcoin stabilizing near $60,000 after a volatile week. However, XLM’s 13% gain outpaces most major altcoins, which have seen average recoveries of 5-7% over the same period.
Technical indicators on the daily chart show the Relative Strength Index (RSI) moving back above 40 after briefly dipping into oversold territory. The next resistance level sits at $0.12, a zone that has capped rallies in recent weeks. A break above that level could open the path toward $0.14, according to some chartists.
Traders should note that the broader market remains cautious, and XLM’s recovery may face headwinds if Bitcoin fails to hold current levels. Volume will be a key metric to watch in the coming sessions.
