Stellar’s The drop marked one of XLM’s steepest declines in recent sessions, underscoring renewed bearish momentum in a market driven largely by technical factors rather than fundamentals.
The sell-off accelerated around the 15:00 session on Monday as volume spiked to 53.9 million (about 74% above the 24-hour average of 21.6 million), indicating increased selling pressure. The inability to recover $0.32 despite multiple bounce attempts confirmed a decisive technical collapse, and the token is now struggling to stabilize near $0.3116.
Data shows that selling intensified in the early afternoon, pushing XLM to a low of $0.311. However, support has started to form near $0.3100, where repeated tests suggest institutional buyers may be piling in. Analysts see this level as the last line of defense before deeper declines.
The move was largely technical in nature, with algorithmic selling triggered by the break of $0.32 and increased participation from European traders adding to the downward momentum. Market watchers are now watching to see if XLM can hold above $0.3100; Failure to do so could open the door to further weakness in the short term.
Key technical levels indicate continued pressure for XLM
Support/resistance:
- Critical bottom at $0.3100 with multiple successful tests during Asian time.
- Key resistance was rebuilt at $0.3337 following a high volume rejection session.
- The immediate battle zone is centered around the $0.3116 consolidation area.
Volume analysis
- The volume explosion to 53.9 million exceeded the 24-hour average by 74% during the breakdown.
- Peak sales reached 1.7 million during the 13:58 hourly candle before stabilization.
- The acceleration in European session volume suggests continued institutional interest.
Chart Patterns
- Clear breakout pattern with consecutive lower highs set for 24 hours.
- The dramatic reversal from the $0.313 resistance confirms the bearish momentum shift.
- The consolidation pattern at $0.3116 provides a signal of near-term stabilization.
Objectives and risk/reward:
- Immediate support group: critical $0.3100-$0.3116 zone for bulls.
- Resistance Wall: $0.3284-$0.3337 limits any recovery attempts.
- Downside Target: A drop below $0.3100 opens the door for accelerated selling.
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. our standards. For more information, see CoinDesk’s full AI policy.
