Stellar’s XLM dropped by 5% on Tuesday, sliding from $0.3284 to $0.3119 after falling below an important support level of $0.32 that had been stable for several weeks. This decline represented one of XLM’s most significant downturns in recent sessions, highlighting renewed bearish momentum driven primarily by technical factors rather than inherent market fundamentals.
The selloff intensified during Monday’s 15:00 session as trading volume surged to 53.9 million—approximately 74% above the 24-hour average of 21.6 million—indicating increased selling pressure. The failure to reclaim $0.32 after several rebound attempts confirmed a notable technical breakdown, with the token now attempting to stabilize around $0.3116.
Data indicates that selling intensified in the early afternoon, pushing XLM down to $0.311. However, support appears to be forming near $0.3100, where multiple tests suggest institutional buyers might be accumulating. Analysts regard this level as the last line of defense before significant declines.
The price movement was largely technical, with algorithmic selling triggered by the breach of $0.32, and increased involvement from European traders contributing to additional downward pressure. Market watchers are now focused on whether XLM can maintain a position above $0.3100—failing to do so may lead to further weakening in the short term.
Key Technical Levels Indicate Ongoing Pressure for XLM
Support/resistance:
- Key support at $0.3100 with multiple successful tests during Asian trading hours.
- Significant resistance reestablished at $0.3337 following a high-volume rejection session.
- Current fight zone centers on the $0.3116 consolidation area.
Volume analysis
- Volume surged to 53.9M, surpassing the 24-hour average by 74% during the decline.
- Peak selling reached 1.7M during the 13:58 hourly candle before stabilization occurred.
- Increased volume during the European session indicates sustained institutional interest.
Chart patterns
- Clear breakdown pattern with consistent lower highs formed over 24 hours.
- Significant reversal from $0.313 resistance confirms a shift in bearish momentum.
- Consolidation pattern near $0.3116 signals short-term stabilization.
Targets & risk/reward:
- Immediate support zone: $0.3100-$0.3116 is crucial for bullish traders.
- Resistance level: $0.3284-$0.3337 limits potential recovery efforts.
- Downside target: A break below $0.3100 could trigger accelerated selling.
Disclaimer: Parts of this article were generated with AI tools and reviewed by our editorial team to ensure accuracy and compliance with our standards. For further information, please see CoinDesk’s complete AI Policy.
