Stellar’s native token, XLM, isn’t having the best week. Over the past 24 hours, it has been subjected to a torrent of sell-side pressure, plummeting from a session high of $0.398 down to a low of $0.380. This intense 5% swing came as traders offloaded massive volumes of the token, hitting a crescendo on August 25 at 19:00 UTC. During this period, prices fell from $0.393 to $0.387, with a staggering 46.16 million tokens changing hands. This flood of activity has effectively cemented $0.393 as a formidable resistance level.
Support and Resistance: The New Frontlines
It wasn’t just a single dramatic drop; the sell-off peaked just an hour later, as XLM probed the $0.380 support level amid unprecedented trading volume of 95.27 million tokens. This number is eye-popping, confirming $0.380 as a critical line of defense for the bulls. Despite the onslaught, the token managed to claw back some ground, closing the session at $0.389. This bounce underscores the resilience of buyer demand at these lower levels. As explored in our recent coverage of Shiba Inu Bulls Defend Dual Support With 1T Volume, the defense of key support levels is a recurring theme in the crypto market.
Market sentiment, it seems, is not solely driven by technical indicators. Broader developments are playing their part as well. A recently filed U.S.-based crypto ETF, aiming to spotlight homegrown digital assets like Stellar, could potentially lure in new waves of institutional capital. Meanwhile, traders are eyeing technical patterns indicating that XLM is coiling beneath a major resistance level near $0.50. The question is if momentum can shift back to the upside, paving the way for a possible breakout.
Traders’ Tug-of-War: High Stakes, High Volatility
Intraday trading action on August 26 highlighted just how tense things are. Between 07:20 and 08:19 UTC, XLM navigated a narrow channel between $0.387 and $0.392, eking out a modest 0.18% gain from its session open. This brief rally to $0.392 was bolstered by bursts of high-volume buying, only to see momentum capped by profit-taking. With trading volumes surging 115% to $402 million on the day, the narrative for Stellar’s near-term trajectory remains defined by the clash between aggressive selling pressure and potential whale accumulation. This scenario is reminiscent of the challenges faced by other cryptocurrencies, as detailed in XRP Price Faces Third Bearish Setup in a Week—What Traders Should Watch.
So, what does this tug-of-war mean for XLM moving forward? The market’s next moves could be influenced by a variety of factors. Investors are keeping a close eye on macroeconomic indicators, regulatory developments, and the broader crypto market’s mood. The technical indicators suggest an ongoing battle: a narrow price battlefield with a brutal 5% war zone and a resistance fortress stubbornly holding at $0.393.
Yet, the support stronghold at $0.380, validated by massive trading volume, provides a glimmer of hope for Stellar bulls. The recovery offensive—marked by a systematic advance toward $0.389—suggests that buyer demand could potentially counterbalance the selling pressure, but the path forward remains uncertain.
Looking Ahead: Uncertainty and Opportunity
As XLM continues to navigate this volatile environment, market participants are left wondering about the token’s future trajectory. Will the support at $0.380 hold firm in the coming days, or will we witness another bearish onslaught? And what of the looming resistance at $0.393? It’s a waiting game for now, with traders on the edge of their seats, ready to pounce at any sign of a trend reversal.
In the larger scheme of things, Stellar’s journey is emblematic of the broader cryptocurrency market’s unpredictable nature. As we head into the latter part of 2025, the interplay between technical levels and external factors like the crypto ETF could very well dictate XLM’s path. For now, though, the market remains a battlefield—one where volatility reigns supreme and only the most astute investors will emerge victorious.
Source
This article is based on: XLM Crashes Through Support as Volume Doubles in 24 Hours
Further Reading
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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.
