Stellar (XLM) fell 1.6% on Tuesday, falling from $0.2491 to $0.2451 as sellers took control and the token extended a series of lower highs from its recent peak of $0.2602.
The asset traded within a range of $0.0153, recording intraday volatility of 6.2%. A sharp increase in volume at 05:00 of 36.3 million XLM (78% above the 24-hour average) confirmed a break below the key support level of $0.2520.
With no clear fundamental catalysts, traders focused on the technical picture, where the loss to $0.2520 signaled a likely institutional distribution rather than retail-driven volatility.
The bearish momentum intensified on the one-hour chart as XLM fell another 0.8%, moving from $0.2478 to $0.2453. Two strong waves of selling took the token below $0.2470 and $0.2460, with consecutive volume increases of 1.71 million and 1.69 million tokens during a one-minute window, more than eight times typical levels.
Key technical levels indicate continued pressure for XLM
Support/resistance analysis:
- Immediate support remains at the session lows of $0.2449.
- Strong resistance is confirmed near the $0.2600 level.
- The breakdown of critical support was completed at $0.2520.
Volume analysis:
- The volume increase of 36.3 million marked 78% above the daily average.
- Consecutive volume increases of more than 1.7 million during the breakdown.
- 8 times normal volume levels confirmed institutional selling.
Chart Patterns:
- Pattern of consecutive lower highs from the peak of $0.2602.
- Acceleration of bearish momentum through support violations.
- The two-wave sales structure dominates the 60-minute chart.
Objectives and risk/reward:
- The downside target stands at $0.2430 if the momentum continues.
- Resistance rises to $0.2520 as previous support flips.
- The key reversal level remains $0.2600 for recovery attempts.
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.
