Stellar’s XLM Faces a Bearish Wave Amid Institutional Selling
In a turbulent 23-hour period from September 29 at 3:00 PM to September 30 at 2:00 PM, Stellar’s XLM token found itself under significant selling pressure, witnessing a 4% decline from $0.38 to $0.36. This drop occurred within a tight $0.01 range, highlighting the token’s ongoing struggle to maintain upward momentum amidst considerable market headwinds.
Institutional Selling Pressure Intensifies
The initial resistance at the $0.38 mark, coupled with a hefty trading volume of 38.6 million, clearly pointed to robust institutional selling. This was further accentuated by a secondary rejection at the same price level, where trading volume reached 18.6 million. Such figures not only underscore the intensity of the selling pressure but also convey a broader narrative of institutions possibly offloading their positions in XLM.
The market displayed a pattern of lower highs and lows, a classic technical indicator of a bearish trend. This was further corroborated by the breakdown below the psychological $0.37 level, a move that effectively cemented the bearish outlook in the eyes of traders. As the session proceeded, support levels appeared at $0.37 and $0.36, with the latter attracting substantial defensive buying. In the final hours, trading volumes at $0.36 spiked to 31.4 million, hinting at some accumulation despite the overarching bearish sentiment.
The Battle at Support Levels
As XLM attempted to stabilize, the support at $0.36 became a battleground. Late-session defensive buying was notable, yet the broader market structure remained skewed towards the downside. The failed recovery attempt at $0.37 during the last trading hour, marked by a brief surge in volumes before rejection, sealed the 4% cumulative decline for the period.
The key technical breakdown occurred at 1:31 PM, with a significant volume of 665,000, signaling a critical support breach. Interestingly, a brief period of zero volume between 2:07 PM and 2:08 PM suggested potential liquidity exhaustion, raising questions about market depth and the sustainability of defensive efforts at current levels.
A Mixed Bag of Market Sentiment
While the high-volume activity at $0.36 suggests that some market participants are willing to accumulate XLM at these levels, it’s clear that the broader market sentiment remains bearish. The pattern of lower highs and lower lows is a testament to sustained institutional distribution, with larger players seemingly opting to reduce their exposure to XLM.
However, it’s important to note that this isn’t necessarily a death knell for XLM. Cryptocurrency markets are notoriously volatile, and sentiment can shift rapidly. The current bearish bias might be mitigated if XLM can establish a foothold above the psychological $0.37 level in the coming sessions, potentially reversing the trend.
Looking Ahead
For market watchers and XLM holders, the path forward will likely hinge on several factors. Key among these will be whether the token can break through the $0.37 resistance with conviction, backed by robust trading volumes. Additionally, broader market trends in the cryptocurrency space, regulatory developments, and macroeconomic factors will all play a role in shaping XLM’s trajectory.
In the meantime, investors and traders alike will be keeping a close eye on volume patterns and price action, looking for signs of either renewed institutional interest or continued selling pressure. As always, those involved in the market should stay informed and exercise caution, given the inherent volatility and unpredictability of the crypto landscape.
While the current picture for XLM is tinged with uncertainty, the crypto world is nothing if not dynamic. As the market evolves, so too will opportunities for those willing to navigate its complexities.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
