On Tuesday, Stellar’s XLM settled at $0.2975, underperforming the wider crypto market by 3.53%, which reflects a lack of relative strength.
Trading volume dipped 21% below the 30-day average, indicating a lack of strong conviction behind the recent price movement. Analysts noted that the price fluctuations appeared to be driven by retail activity, with minimal signs of institutional backing—an essential factor for enduring gains.
XLM dropped from $0.3194 to $0.2952 before executing a sharp V-shaped rebound back to $0.2980, suggesting potential accumulation near the $0.2950 support level. Nonetheless, the subdued volume implies that any breakout above the $0.3000–$0.3050 area will necessitate enhanced involvement from larger market players.
Technical analysis
- Support/Resistance
- Key support is positioned at $0.2950.
- A resistance cluster is developing at $0.3000–$0.3050, with significant resistance at $0.3200 following the previous breakdown.
- Volume Analysis
- Volume reached 81.9M (198% above the 24-hour SMA), marking the reversal point.
- Overall session volume was down 21% compared to the 30-day average, reflecting weak conviction.
- Chart Patterns
- The V-shaped recovery from session lows indicates a potential double-bottom formation.
- Confirmation through sustained volume is needed to validate this pattern.
- Risk/Reward
- The current positioning at $0.2975 presents a favorable setup.
- Implement tight stops below $0.2950 support, with target levels approaching the $0.3050 resistance zone.
Disclaimer: Parts of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
