Stellar’s XLM token has faced a challenging 24-hour period, marked by a significant 6% tumble in its value amidst heavy institutional selling. Between August 17 at 3:00 PM and August 18 at 2:00 PM, the token’s price slumped from $0.43 to $0.41, a movement that caught the attention of market watchers and traders alike.
Institutional Sell-Offs Shake the Market
The heart of this downward spiral took place in the early hours of August 18, as institutional sellers unloaded over 60 million XLM tokens between 1:00 AM and 3:00 AM. This aggressive sell-off dropped the token’s price from $0.42 to $0.41, carving a strong resistance at $0.42 and establishing a new support level at $0.41. The speedy liquidation was a wake-up call to many, indicating a possible shift in institutional sentiment towards Stellar’s token. This mirrors similar trends seen in other cryptocurrencies, as discussed in ETH Remains in the Spotlight as Signs of Selling Pressure Appear.
“What we’re seeing here is classic bearish pressure from big players,” noted crypto analyst Lydia Zhang. “The inability of XLM to break past the $0.42 mark suggests there’s a lack of confidence in its near-term recovery, likely due to broader market conditions.”
Trading Volume and Resistance Levels
The trading volume during this period was nothing short of substantial, exceeding $30 million and representing about 7% of Stellar’s daily turnover. This rush of activity, however, wasn’t enough to lift the token out of its slump. In fact, the final trading hour on August 18 saw XLM register an additional 1% drop as institutional selling once again surged between 1:31 PM and 1:42 PM, with over 2.7 million units changing hands.
The persistence of selling pressure at the $0.41 level suggests that this price point may act as both a support and a resistance zone in the short term. Despite several attempts to rally, XLM consistently failed to break through the resistance, leaving it in a precarious position.
Historical Context and Market Trends
This isn’t the first time XLM has faced such volatility. The token, which has been part of the cryptocurrency landscape since 2014, has experienced its fair share of ups and downs, often mirroring the broader market trends. However, the current situation seems to be influenced by more than just market trends—it points to a deeper, possibly systemic shift in how institutional investors view Stellar’s prospects. This pattern of shifting investor focus is also evident in other areas of the crypto market, as highlighted in Solana Meme Coins Slump as Investors Rotate into ETH & ‘Quality-Focused’ Altcoins.
“This kind of sell-off, especially from institutions, usually signals a broader reevaluation of the asset’s potential,” commented Jake Henderson, a veteran trader with a focus on altcoins. “It’s not just about price; it’s about what those prices mean for future growth.”
Uncertain Future and Market Implications
As the dust settles, the future trajectory of XLM remains uncertain. The lack of significant buying interest, especially during crucial trading hours, raises questions about whether this trend of weakness will persist if sellers continue to dominate the market.
Looking ahead, traders and analysts are watching closely for any signs of a rebound or further decline. The inability to surpass the $0.42 resistance could keep XLM in a tight trading range, at least in the short term. Meanwhile, the broader cryptocurrency market’s health will undoubtedly play a role in shaping the token’s future.
This episode highlights the complex interplay between market forces and institutional activities, leaving stakeholders pondering the extent to which these dynamics will influence XLM’s path in the months to come. As always in the crypto world, the only certainty is uncertainty.
Source
This article is based on: Stellar’s XLM Token Drops 6% as Selling Pressure Intensifies
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.
