Heavy Institutional Offloading Drives Sharp Decline
Within a 24-hour window from August 17 to 18, Stellar’s XLM token plunged 6%, descending from approximately $0.43 to $0.41. This slide was primarily fueled by a major liquidation during the early hours of August 18, when institutional sellers dumped over 60 million tokens. The onslaught quickly created $0.42 as a steadfast resistance level while $0.41 emerged as a critical support zone. Trading volumes soared beyond $30 million, nearly 7% of daily turnover, underscoring the scale of this market mov
Resistance Holds, But Buyer Momentum Fades
Despite attempts to rebound, XLM failed to breach the resistance bar set at $0.42. In the final trading hour, a further 1% decline occurred, reinforcing the upper bound. Trading was heavily skewed toward sellers; demand remained tepid. With few bids near $0.41, the token remains susceptible to further downside if institutional pressure persists.
Technical Implications and Market Sentiment
The price action signals waning confidence among larger market participants. The $0.41 level now acts as crucial short-term support. A breakdown here could prompt a revisit toward the psychologically important $0.40 mark. On the other hand, a break above $0.42—albeit unlikely without volume support—could signal a reversal or short-term consolidation.
Broader Market Context and Institutional Behavior
XLM’s decline mirrors the broader trend in altcoin markets, where institutional players are tightening exposure. The imbalance in supply and demand reflects risk aversion, particularly amid macroeconomic uncertainty. Notably, this sell-off contrasts with ongoing developing on-chain activity, such as a surge in real-world asset tokenization interest on the Stellar network, overseen by its development foundation.
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