Stellar faced selling pressure during Tuesday’s session with XLM falling from $0.2846 to $0.2812 as institutional distribution emerged to elevated levels. The token established a range of $0.0189, representing 6.7% volatility, signaling increased uncertainty from traders around current price levels.
The crash accelerated at 2:00 p.m. as trading volume skyrocketed to 76.24 million tokens, 115% above the 24-hour average of 35.4 million. The price tested resistance near $0.290 before sellers overwhelmed buyers, pushing XLM through the critical $0.285 support zone that had anchored previous consolidation attempts.
Recent 60-minute data shows that XLM declined from $0.289 to $0.281, marking a sharp drop of 2.8% characterized by lower highs and lower lows. The bears gained control during the key moments at 15:44 and 15:47, with volume exceeding 1.9 million as the price action decisively broke below the $0.285 level.
Key technical levels indicate breakout risk for XLM
Support/resistance analysis:
- Primary resistance was established at $0.294 after the session highs.
- Critical support zone now at $0.281 after a decisive breakout.
- Secondary support target identified in the $0.278-$0.280 range.
Volume analysis:
- The 24-hour volume rose 26.06% above the 7-day average during the crisis.
- Peak institutional activity at 76.24 million shares coincided with the rejection of the resistance.
- Elevated selling pressure remained above 1.9 million during key breakout moments.
Chart Patterns:
- Clear trading range between $0.281 and $0.294 established during the session.
- The pattern of lower highs and lower lows confirmed a bearish momentum shift.
- The failed escape attempt validated the thesis of distribution at higher levels.
Objectives and risk management:
- Immediate downside target: $0.278-$0.280 support zone.
- Risk level for any rebound attempt: $0.285, former support now resistance.
- Volume confirmation above 2 million is required for sustained directional moves.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and were reviewed by our editorial team to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI Policy.
