The post XLM Caught in a Downtrend—Here’s What Needs to Break for a Rebound appeared on BitcoinEthereumNews.com.

Stellar (XLM) price has traded flat over the past 24 hours, showing just a 0.3% move. Over the last 7 days, it slipped about 2.8%, but on a three-month view, it is still up more than 35%. The longer uptrend leaves some hope, but one fundamental problem has capped momentum: weak DeFi activity. DeFi Underperformance Limits XLM’s Upside Data shows that Stellar’s total value locked (TVL) in DeFi has barely moved. On July 31, Stellar’s TVL stood at $143.35 million. By August 27, it had fallen slightly to $142.48 million. That stagnation stands in sharp contrast with peers like Solana, BSC, and even Bitcoin-linked protocols, which all saw spurts of DeFi growth in the same period. For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Stellar’s DeFi Performance: Defillama This lack of traction in Stellar’s DeFi layer has likely weighed on price. Even so, buying activity has increased, showing that retail traders are still trying to lean bullish. Net outflows have now run for five consecutive days, climbing from $3.38 million on August 23 to $9.85 million on August 27 — a near 200% increase. XLM Buyers At Work: Coinglass Despite the DeFi weakness, it is worth noting that Stellar’s Real World Asset (RWA) segment is growing. RWA valuations are up more than 13% this month, at $510.79 million. If Stellar can capture some of this demand, it could offset the XLM price drag from its sluggish DeFi adoption. More so if the buying activity continues. RSI Floor Shows Sellers Struggling Beyond flows, technical signals add another layer. Stellar’s daily RSI has repeatedly tested the same floor (42.70) without breaking lower. This suggests sellers have failed to take full control. XLM Price And Sellers Losing Ground: TradingView Between…

---

Filed under: News - @ August 27, 2025 9:23 pm