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The crypto industry is experiencing capitulation, as most top projects that started the week positively, including Stellar ($XLM), have commenced shedding their gains. The $XRP rival has seen its price drop by 1.76% in 24 hours to $0.2873, according to CoinMarketCap data. While the reason for this sudden slump remains unknown, the coin is flashing signs of erasing its seven-day gains.
Stellar volatility and pressured metrics
Stellar's current outlook has forced it to take on underdog status against $XRP. While Stellar has retained just 0.68% of its gains in the trailing seven-day period, $XRP is still up 7.27% within the same period.
Some of the coin’s metrics have dropped in line with the price of $XLM. The trading volume, for instance, is down by 26.9% to $261,476,049.98, a clear sign of reduced market participation.
Beyond the volume, Stellar has witnessed intense volatility in the past few hours. While the 24-hour price recorded a drawdown, the past hour before press time saw the coin jump by approximately 1.2%.
In what appears to be a rebound following its flipping by Toncoin over the weekend, the ongoing $XLM breakout might signal that more selling off is ahead.
Altcoin market seeing uncertainty
The unexpected drawdown in the price of $XLM reflects the state of most altcoins on the market. As of press time, Ethereum has also dropped by 2.35% in 24 hours, falling below the $2,000 support level.
Solana is also experiencing a mild drawdown with a 1.1% loss to $130. When Ripple Labs CEO Brad Garlinghouse revealed the SEC’s lawsuit dismissal, these profiled altcoins skyrocketed to their highest level.
While it remains unknown if the current correlation is a signal that more price reversals are imminent, it proves that the much-sought-after altcoin season is yet to emerge.