Stellar (XLM) is under strong selling pressure today. The much-liked cryptocurrency asset dipped 7.82% to $0.1958. The market seems to be volatile and XLM is touching its daily low.

The digital currency has fallen under its short-term and medium-term moving averages, as per the analysis. But, it remains to be above its chief LRS level.

Technical Indicators Flash Warning Signs

The short-term outlook for Stellar looks shaky. The sellers have all the control at the moment. The price is below both the 20-day and 50-day moving averages, indicating a strong downward trend recently.

This battle is reflected in several momentum instruments:

• The Relative Strength Index (RSI) is at 25.8, suggesting XLM is highly oversold.
• Other indicators like Awesome Oscillator and MACD have strong sell indications.
• The Ichimoku Kijun line seems to be forming a strong resistance ceiling at $0.02066.

For now, analysts believe XLM’s price should remain within a narrow range of $0.1845 and $0.2071. The breakup is expected to be towards the upside, though a bit is unlikely due to volatility. When the price drops below the support level of $0.1845, it may cause additional losses.

Institutional Adoption Provides a Silver Lining

Even if the price action is looking bad, Stellar is winning big behind the scenes. Real-world adoption is accelerating.

To begin with, the Depository Trust and Clearing Corporation (DTCC) is set to use its asset tokenization service on the Stellar blockchain. The transition may result in a huge wave of institutional funds coming to the network in the near future.

Second, fintech giant MoneyGram just released its MoneyGram Stablecoin (MGUSD) on top of the Stellar blockchain for U.S. consumers. The launch is a demonstration that Stellar is a leading platform for retail payments in daily life.

The buyers might not be pricked into action right now, but the big-time collaborative deals are proof that the network growth is still extremely healthy in the long run. Investors will be watching closely to see if this real-world utility can help XLM snap out of its bearish phase.