XLM Approaches Key Support Near $0.17 as Bulls Set Sights on Next Surge: Where Next?

Key Insights:

• XLM holds key support at $0.17 amid a sharp price drop and reduced market momentum.
• Stellar’s DeFi TVL declines to $163.1M as network activity slows down significantly.
• Bulls hope for recovery as price stabilization near $0.17 could trigger upward movement for XLM.

Stellar (XLM) is currently testing important support levels near $0.17. After a significant price drop, market participants are closely watching for signs of a possible recovery. The currency is now at a critical point, where bulls may look to regain control and push the price upward once again.

XLM Price Decline and Market Trends

XLM price has dropped sharply to $0.171 as of February 4, 2026. After reaching a peak in mid-2025, XLM saw a noticeable decline, especially from late July 2025. As the price continued to drop, market momentum slowed, and many traders began questioning if further downside potential existed.

Despite the decrease in price, the trading volume remains high, with 181.7 million XLM traded over the past 24 hours. However, this volume hasn’t been able to stop the downward trend in the asset’s value. A major point of concern for investors is whether the current support zone will be strong enough to keep the price from falling further.

DeFi Ecosystem and TVL Decline

Stellar’s DeFi ecosystem has also experienced a downturn. As of February 2026, the total value locked (TVL) in the platform has dropped to $163.1 million. This marks a decline from the over $200 million TVL peak reached in late 2025. Additionally, application fees have fallen significantly to $2,547, signaling a slowdown in network activity.

The decline in TVL is linked to a broader drop in overall market sentiment. As less capital flows into the network, fewer users participate in DeFi applications, which results in lower transaction fees. “It’s clear that DeFi activity on Stellar has reduced since the peak of 2025. If the trend continues, the platform could face more challenges.

Bulls Eyeing Potential Recovery

Although the market has faced some difficulties, bulls are looking for an opportunity to push the price higher. As Stellar holds near the $0.17 support level, investors are hopeful that a price recovery is on the horizon. Butterfly highlighted that if the price holds steady, bulls could regain control, and that could send $XLM immediately FLY to new heights

Bulls are testing the lower border of the channel, but if they can manage to break through, XLM could see a sharp rise. However, if the support zone fails to hold, traders might have to reconsider their strategies, as the next support level is much lower.