Stellar Token Dives 5% as Technical Support Crumbles

Stellar (XLM) Drops 5% as $0.38 Support Fails Amid Heavy Institutional Selling

Stellar’s XLM token slid 5% from $0.39 to $0.38 over the 24-hour period from October 8–9, as institutional selling intensified across the crypto market. Trading volumes surged to 35.51 million, well above average, indicating strong distribution pressure from professional desks.

The breakdown below the $0.38 support level marked a clear bearish shift. XLM’s price action formed a descending channel, with repeated rejections near $0.38 suggesting sustained selling pressure. The intraday trading range remained narrow at $0.019, reflecting cautious market sentiment.

During the final trading hour on October 9, XLM slipped another 1%, with notable volume spikes at 13:52 and 14:01 pointing to coordinated institutional liquidations. Analysts indicated that these moves were largely driven by professional trading activity rather than retail investors.

Technical Observations:

• $0.38 support failed under institutional-grade volume
• Descending channel with lower highs signals ongoing bearish momentum
• Resistance near $0.39 prevented recovery attempts, confirming overhead supply
• Above-average volume during declines highlights coordinated institutional selling
• Momentum indicators suggest continued downside toward the $0.38 psychological level

Unless buying pressure returns, XLM faces continued short-term downside risk as technical patterns and institutional activity indicate further weakness.