In a display of volatility that has become all too familiar in the crypto market, Stellar’s native token, XLM, experienced a dramatic 5% swing over the past 24 hours. The token oscillated between $0.34 and $0.36, starting off with relative calm before being hit by a late-evening selloff that pushed it to the lower end of its range. As the dust settles, questions remain about the token’s near-term trajectory.
Turbulent Trading and Institutional Moves
The trading session kicked off with XLM maintaining a steady footing until around midnight when a wave of selling pressure sent shockwaves through the market. Trading volumes surged past 57 million units, a clear sign of institutional activity, as the market probed support levels around $0.34. By the early hours, buyers had resurfaced, driving the token back to $0.36 driven by what appears to be a strategic accumulation phase. Volumes grew to a hefty 70 million units, underscoring the significance of institutional players stepping in. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Despite this resurgence, XLM’s price action hit a wall at $0.36, suggesting the formation of a range-bound structure that often hints at an impending directional move. “The price action around $0.36 is telling,” remarked crypto analyst Jenna Lee. “It’s like watching a coiled spring—something’s going to give, but the direction is still anyone’s guess.”
Market Forces and Network Upgrades
The token’s tumultuous session coincided with several pivotal developments. South Korean exchange Bithumb’s announcement to suspend XLM deposits on September 3 due to Stellar’s forthcoming network upgrades added a layer of uncertainty. This temporary suspension highlights Stellar’s ongoing transition into a critical upgrade phase aimed at bolstering its technological infrastructure.
Meanwhile, Ripple’s successful pilot tests with banks have cast a longer shadow over the market, amplifying pressure on Stellar to keep pace with these advancements. “Ripple’s inroads into banking can’t be ignored,” said financial tech consultant Alex Kim. “This puts Stellar in a position where they need to deliver competitive improvements—quickly.” For a broader perspective on Ripple’s market influence, see XRP Becomes Top 3 Coin on Major US Exchange Kraken’s Top Crypto List.
The Path Forward: Recovery or Further Decline?
As the day drew to a close, XLM’s recovery efforts fizzled out. Intraday data from September 1 indicated a significant acceleration of selling pressure between 13:45 and 13:46, with over 1.28 million tokens exchanging hands at the day’s low point. Recovery attempts were short-lived, and the lack of trading activity in the final moments hinted at a market caught in limbo.
The immediate future for XLM remains shrouded in uncertainty. While the market appears poised for a breakout, the direction remains uncertain amid the broader context of technological transitions and competitive pressures. With network upgrades on the horizon and external developments impacting sentiment, stakeholders are keenly watching for any shifts in momentum.
As September unfolds, the crypto community will be paying close attention to whether Stellar can leverage its upcoming enhancements to regain ground—or if external pressures will continue to weigh on its performance. The narrative is still unfolding, and for now, traders are left to navigate the choppy waters of speculation and strategy.
Source
This article is based on: XLM Plunges 5% in Wild Trading Session Before Staging Sharp Recovery
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.
