Stellar (XLM) extended its recent decline on Tuesday, falling 2.2% from $0.2789 to $0.2727 as the $0.2815 resistance again put a cap on upward momentum. The token traded within a $0.0124 range, reflecting 4.5% intraday volatility, while a series of lower highs confirmed the prevailing bearish bias. Support remains near $0.2709, supported by repeated tests of the psychological $0.27 level.
Trading volume rose to 42.6 million tokens at the $0.2815 resistance zone, a 62% jump over the 24-hour moving average. The rise coincided with institutional selling pressure that negated further gains and signaled a potential distribution phase. This combination of rising volume and price rejection reinforced sellers’ dominance and underscored waning bullish conviction.
On the 60-minute chart, a brief recovery attempt between $0.2720 and $0.2755 during early afternoon trade gave way to a sharp reversal minutes later. The failed breakout triggered a quick drop to $0.2724, accompanied by more than 1 million tokens in sell-side volume within a three-minute window. The pattern confirmed a false breakout scenario and the continuation of the broader downtrend.
As trading momentum faded into the close, overall volume fell to just 18% of the session average, highlighting depleted buying interest. Without a fresh catalyst or a volume-supported breakout above $0.2815, XLM remains vulnerable to further downside pressure, with short-term traders eyeing the $0.2709 support level as the next key test.
Support/Resistance Analysis:
- Primary resistance is at $0.2815 with volume-confirmed selling interest.
- Support zone holds around $0.2709-$0.2720 after several successful tests.
- The psychological $0.27 level provides a temporary floor amid session volatility.
Volume analysis:
- Maximum trading of 42.6 million tokens marked the resistance rejection point.
- Heavy selling pressure topped 1M tokens during the afternoon reversal.
- Volume collapse to 18% of average confirms momentum deceleration.
Chart Patterns:
- A downtrend is established through successive formation of lower highs.
- A false breakout pattern was completed within a 60-minute time frame.
- A reversing light confirms institutional distribution by resistance.
Objectives and risk management:
- The immediate support target is at the $0.2720 zone based on recent actions.
- A break below $0.2709 accelerates the decline towards the next technical level.
- Resistance remains firm at $0.2815 until a volume-supported breakout emerges.
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.
