Stellar’s XLM tumbled 5% on Tuesday, falling from $0.3284 to $0.3119 after breaking below a critical $0.32 support level that had held for weeks. The drop marked one of XLM’s sharpest declines in recent sessions, underscoring renewed bearish momentum in a market largely driven by technicals rather than fundamentals.
Selling accelerated around Monday’s session at 3:00 p.m., as volume rose to 53.9 million – roughly 74% above the 24-hour average of 21.6 million – signaling increased selling pressure. Failure to regain $0.32 despite several rebound attempts confirmed a crucial technical breakdown, with the token now struggling to stabilize near $0.3116.
Data shows that selling intensified in the early afternoon, pushing XLM all the way down to $0.311. However, support has started to form near $0.3100 where repeated tests suggest that institutional buyers may accumulate. 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 downside momentum. Market watchers are now looking to see if XLM can hold above $0.3100 – a failure to do so could open the door to further weakness in the near term.
Key technical levels Signal continued pressure for XLM
Support/Resistance:
- Critical bottom at $0.3100 with several successful tests in Asian hours.
- Key resistance rebuilt at $0.3337 after high volume rejection session.
- Immediate battle zone is centered on $0.3116 consolidation area.
Volume analysis
- The volume explosion to 53.9 million exceeded 24-hour average by 74% during collapse.
- Top sales reached 1.7 million. during the 13:58 hour-light before stabilization.
- The European session volume acceleration suggests continued institutional interest.
Short patterns
- Clear decay pattern with successive lower highs established over 24 hours.
- Dramatic reversal from $0.313 resistance confirms bearish momentum shift.
- Consolidation pattern at $0.3116 provides a short-term stabilization signal.
Objectives and risk/reward:
- Immediate support cluster: $0.3100-$0.3116 zone critical for bulls.
- Resistance wall: $0.3284-$0.3337 caps any recovery attempt.
- Downside target: Break below $0.3100 opens the door to accelerated selling.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial staff to ensure accuracy and compliance with our standards. For more information, see CoinDesk’s full AI policy.
