Stellar’s XLM token surged past the $0.398 resistance level on increased trading volume following a period of consolidation, driven by evolving macroeconomic factors boosting demand for payment-centric cryptocurrencies.
Over the 24 hours ending August 21, XLM traded tightly between $0.39 and $0.41, signaling consolidation ahead of a breakout attempt. Sellers repeatedly held back advances near $0.41, while buyers defended the $0.40 support, keeping price swings modest. A steady decline in volume suggested traders were positioning for a decisive move.
The breakout materialized late in the session as XLM climbed from $0.396 to $0.399, clearing the $0.398 resistance mark on a volume surge exceeding 1.5 million tokens. This rally established new intraday highs and confirmed a short-term bullish trend.
Supporting this momentum are broader shifts in the payments landscape, including changing trade patterns, new stablecoin regulations, and inflationary pressures from supply chain issues. These factors are driving interest in blockchain-based payment alternatives, fueling demand for tokens like Stellar.
Technical Highlights:
- XLM decisively broke above $0.398 resistance with robust volume confirmation.
- A tight trading range of approximately 3% ($0.01) before the breakout indicated controlled volatility.
- Final hour volume spiked over 1.55 million tokens, pointing to institutional involvement.
- Strong support at $0.40 was validated by multiple price rebounds.
- The reversal in declining volume during the breakout signals growing bullish conviction.
