Stellar has recently broken out from a flag pattern, raising concerns about potential further losses. Despite the technical challenges, the network’s Total Value Locked (TVL) is surging to record levels, highlighting strong DeFi activity in the ecosystem. Analysis suggests that while this growth may be driven by increasing adoption and investor confidence, recent price fluctuations signal a potential bearish outlook for the asset. Analysts highlight both bullish and bearish factors as Stellar navigates volatile market conditions. Crypto analyst Ali Martinez highlights the technical breakdown from a flag pattern, predicting further losses if it confirms. He warns of potential downward pressure on XLM’s price. Meanwhile, Steph Is Crypto notes that the strong growth in TVL indicates growing confidence in the ecosystem. However, he cautions about potential volatility and downside risk associated with short-term price fluctuations. 80% increase in TVL since July has pushed the network to an all-time high of $152.11 million. 24-hour price drop, however, puts pressure on XLM’s current price at around $0.407 after falling 6.36%. However, the immediate resistance level is seen at $0.415–$0.420. According to Ali Martinez, Fibonacci retracement levels align with the bearish projection. Meanwhile, analysts are exploring potential links between Ripple and Stellar. Black Swan Capitalist suggests that Ripple’s global payments strategy may have provided financial support for Stellar’s development alongside its own expansion. The analyst speculates about whether XRP might bridge the gap between XLM in future networks. Disclaimer: This article is for informational purposes only and does not constitute financial advice.