XLM Slides 5% on 115% Volume Surge, Tests $0.380 Support
Stellar’s XLM dropped 5% from $0.398 to $0.380 as trading volume surged 115% to $402 million, with a record 95.27 million tokens exchanged at the low. The sell-off cemented $0.380 as a critical support zone and $0.393 as resistance, despite a rebound to $0.389 by session’s end. Traders are eyeing a pending U.S. crypto ETF that could channel institutional capital into Stellar and other digital assets. Technical charts show XLM coiling below a key $0.50 resistance, with intraday volatility highlighting a battle between heavy liquidation and potential whale buys. A decisive breakout or further decline will depend on renewed buying momentum and ETF-driven inflows.
Bearish
The 5% drop in XLM amid a 115% volume surge and breach of the $0.380 support indicates strong selling pressure and potential continuation of the bearish trend. Although the token rebounded slightly, similar breakdowns in cryptocurrencies often lead to further declines before settling. The current consolidation below $0.50 resistance and heavy liquidation suggest cautious short-term sentiment, with traders likely to await clear signs of demand before increasing long positions. Long-term recovery hinges on ETF inflows, but for now, the market outlook remains predominantly negative.