XLM Slides 5% as Key $0.38 Support Breaks Amid Institutional Selling
Stellar’s XLM extended its recent losses, dropping 5% from $0.39 to $0.38 between October 8 and 9, as institutional selling intensified. Trading volumes surged to 35.51 million, well above average, confirming strong distribution pressure.
The breach of the $0.38 support level marked a shift in market sentiment, with XLM forming a descending channel and repeatedly failing to reclaim key levels, signaling sustained bearish momentum. Intraday trading remained tight, with a $0.019 range, highlighting market caution.
In the final hour of trading on October 9, XLM fell another 1%, with volume spikes at 13:52 and 14:01 pointing to coordinated institutional liquidations. Analysts noted that the decline was primarily driven by professional trading desks rather than retail activity.
Technical Summary:
- Critical $0.38 support failed amid institutional-grade volume
- Descending channel formation with lower highs shows ongoing bearish pressure
- Resistance at $0.39 blocked recovery attempts, confirming overhead supply
- Volume patterns indicate sustained selling from large market participants
- Momentum indicators suggest further downside risk toward the $0.38 psychological floor
Unless buying pressure returns, XLM is likely to continue facing short-term weakness, with technical signals pointing to persistent institutional selling as the main driver of price action.
