Stellar’s XLM consolidated to $0.2975 on Tuesday, but lagged the broader crypto market by 3.53%, highlighting weak relative strength.
Trading volume fell 21% below its 30-day average, indicating limited conviction behind the move. Analysts said the price action appeared to be retail-driven, with little evidence of institutional support – a key ingredient for sustained upside.
XLM fell from $0.3194 to $0.2952 before a sharp V-shaped rally to $0.2980, suggesting possible accumulation near $0.2950 support. However, the muted volume suggests that any breakout above the $0.3000-$0.3050 zone will require stronger participation from major players.
Technical analysis
- Support/resistance
- Primary support is holding at $0.2950.
- Cluster of resistance is forming at $0.3000-$0.3050, with critical resistance at $0.3200 after the previous breakdown.
- Volume analysis
- 81.9 million volume (up 198% above 24-hour SMA) marked the turning point.
- Total session volume was 21% below the 30-day average, indicating weak conviction behind the move.
- Chart Patterns
- V-shaped recovery from session declines suggests a possible double bottom formation.
- Confirmation of sustained volume is required to validate the pattern.
- Risk/reward
- Current positioning at $0.2975 offers a favorable setup.
- Tight stops below $0.2950 support, targeting the $0.3050 resistance zone.
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.
