Stellar (XLM) extended its recent decline on Tuesday, falling 2.2% from $0.2789 to $0.2727 as resistance at $0.2815 once again limited the upside momentum. The token is trading within a range of $0.0124, reflecting intraday volatility of 4.5%, while a series of lower highs confirmed the prevailing bearish bias. Support remains near $0.2709, strengthened by repeated tests of the psychological level of $0.27.
Trading volume reached 42.6 million tokens at the $0.2815 resistance zone, a 62% jump above the 24-hour moving average. This rise coincided with institutional selling pressure that rejected further gains and signaled a potential distribution phase. This combination of increased volume and price rejection reinforced the dominance of sellers and highlighted the decline in bullish conviction.
On the 60-minute chart, a brief attempted recovery between $0.2720 and $0.2755 early in the afternoon gave way to a sharp reversal a few minutes later. The failed breakout triggered a rapid decline to $0.2724, accompanied by a sales volume of over 1 million tokens in a three-minute window. The trend confirmed a false breakout scenario and the continuation of the broader downtrend.
As trading momentum faded toward the close, overall volume contracted to just 18% of the session average, highlighting exhausted buying interest. Without a new catalyst or volume-backed breakout above $0.2815, XLM remains vulnerable to further downward pressure, with short-term traders eyeing the $0.2709 support level as the next key test.
Support/resistance analysis:
- Primary resistance is at $0.2815 with seller interest confirmed by volume.
- The support zone lies between $0.2709 and $0.2720 after several successful tests.
- The psychological level of $0.27 constitutes a temporary bottom amid session volatility.
Volume analysis:
- The trading peak of 42.6 million tokens marked the rejection point of resistance.
- Heavy selling pressure exceeded 1 million tokens during the afternoon reversal.
- The collapse in volumes to 18% of the average confirms the deceleration of dynamics.
Chart templates:
- A downtrend is established by the consecutive formation of lower highs.
- A false breakout pattern was performed within 60 minutes.
- A reversal candle confirms the institutional distribution at resistance.
Targets and risk management:
- The immediate support target lies at the $0.2720 area based on recent actions.
- A break below $0.2709 accelerates the decline towards the next technical level.
- Resistance remains firm at $0.2815 until a volume-supported breakout emerges.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial team to ensure accuracy and compliance. our standards. For more information, see CoinDesk Comprehensive AI Policy.
