Stellar (XLM) extended its recent slide on Tuesday, falling 2.2% from $0.2789 to $0.2727 in resistance at $0.2815 once again trapped in upside momentum. The token traded within a $0.0124 range, reflecting 4.5% intraday volatility, while a series of lower highs confirmed the prevailing bias. Support remains near $0.2709, bolstered by repeated tests of the $0.27 psychological level.
Trading volume surged to 42.6 million tokens at the $0.2815 resistance zone, a 62% jump above the 24-hour moving average. The advance coincided with institutional selling pressure that declined further acquisitions and signed off on a potential distribution phase. The combination of rising volume and declining prices has reinforced the dominance of sellers and is undermining inertial conviction.
On the 60-minute chart, a brief recovery attempt between $0.2720 and $0.2755 during early afternoon trade gave way to a sharp minute reversal. The failed breakout triggered a quick drop to $0.2724, accompanied by more than 1 million tokens in selling volume during the three-minute window. The pattern confirms a false breakout scenario and the continuation of a broader downtrend.
As trading momentum dissipated in the near term, overall volume contracted at just 18% of the session average, featuring depleted buying interest. Without a fresh catalyst or a volume-supported breakout above $0.2815, XLM remains vulnerable to further downside pressure, with short-term traders eyeing the $0.2709 support level as the next key test.
Support/Resistance Assessment:
- Key resistance is at $0.2815 with interest confirmed selling volume.
- The Support Zone is holding around $0.2709-$0.2720 after several successful tests.
- The psychological level of $0.27 provides a temporary floor amid session volatility.
Quantitative Assessment:
- The peak trading of 42.6m tokens marked the turning point of the decline.
- Heavy selling pressure led 1m tokens to retreat in the afternoon.
- The fall in volume to 18% of the average confirms the deceleration of momentum.
Chart patterns:
- A downtrend is established by successively lower building highs.
- A false breakout pattern is completed within a 60-minute time frame.
- An inverted candle confirms the institutional distribution at resistance.
Targets and Risk Management:
- The immediate support target sits at the $0.2720 zone based on recent action.
- A break below $0.2709 accelerates the decline towards the next technical level.
- Resistance remains firm at $0.2815 until a volume-supported breakout appears.
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