I’m going to say something that most crypto traders hate hearing: nothing exciting is happening here… and that’s exactly the point. Stellar (XLM) is doing what supply and demand traders expect after a massive rally. The question is not if price keeps dropping, but where it finally finds real demand. Let’s break it down calmly, without hype, indicators, or crypto Twitter drama.

Big Picture: Monthly Timeframe Reality Check

Stellar (XLM) had a very strong monthly rally in November 2024. That kind of vertical move never comes for free. Strong impulses are followed by corrections — not because of news, fundamentals, or influencers, but because price must rebalance supply and demand.

Since that rally, XLM has been dropping for months, respecting the most basic rule of price action:

After an aggressive surge, price must return to where unfilled demand remains.

Right now, the primary monthly demand imbalance sits around $0.10, and price is slowly gravitating toward it. No surprise. No panic. Just structure is doing its job.

This is exactly why I keep repeating: If you want to learn to trade crypto properly, you must stop reacting emotionally and start reading the larger timeframes.

What’s Happening in the Smaller Timeframes (Daily & H4)

While the monthly chart defines the destination, the daily and H4 timeframes explain the journey.

  • New supply imbalances are being created on a daily and H4
  • Price keeps printing new lows
  • Every bounce is corrective, not impulsive
  • Supply remains in control until proven otherwise

This is classic bearish price action behaviour. Smaller-timeframe supply zones are acting as stepping stones, pushing price lower toward the higher-timeframe monthly demand. Trying to buy Stellar now because it “feels cheap” is how accounts slowly bleed. Patience, not prediction, is what pays.

The Psychology Trap (And Why Most Crypto Traders Lose Here)

This is the dangerous phase of every crypto correction:

  • The hype is gone
  • The YouTubers are quiet
  • Retail traders are bored
  • Impatient traders start “guessing bottoms”

And that’s exactly when professional traders do nothing.

Trading is not about action. It’s about waiting. Waiting while others get chopped up. Waiting while price completes its correction. Waiting for demand to actually show up — not hoping it will. If trading feels boring right now… good. That means you’re finally doing it right.

Key Takeaway for Crypto Traders

  • Stellar (XLM) is in a healthy correction after a strong monthly rally
  • The monthly demand at $0.10 is the key area to watch
  • Daily and H4 supply is still pushing price lower
  • Buying now is aggressive and emotionally driven
  • Patience beats activity — every single time

Whether you want to learn to trade crypto, improve your price action skills, or understand real supply and demand trading strategies, this is a textbook example of why higher timeframes always win.

Let Stellar do its thing. When price finally reaches real demand, it won’t need motivation, hope, or a meme — price action will speak for itself.

Trade less. Live more. 😉

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