Stellar’s XLM consolidated at $0.2975 on Tuesday, but lags the broader crypto market by 3.53%, highlighting weak relative strength.
Trading volume fell 21% below the 30-day average, indicating limited conviction behind the move. Analysts said the price action appeared to be driven by retail trading, with little evidence of institutional support – a key ingredient for a sustainable rise.
XLM plunged from $0.3194 to $0.2952 before a strong V-shaped recovery to $0.2980, hinting at possible accumulation near the $0.2950 support. However, the moderate volume suggests that any breakout above the $0.3000 to $0.3050 area will require stronger participation from large players.
Technical analysis
- Support/Resistance
- Main support holding at $0.2950.
- A resistance cluster forms between $0.3000 and $0.3050, with critical resistance at $0.3200 following the previous breakdown.
- Volume analysis
- Volume of 81.9 million (up 198% above the 24-hour SMA) marked the reversal point.
- Overall session volume was 21% below the 30-day average, indicating low conviction behind this move.
- Chart templates
- A V-shaped recovery from session lows suggests a possible double bottom formation.
- Sustained volume confirmation is necessary to validate the model.
- Risk/Reward
- The current positioning at $0.2975 offers a favorable setup.
- Stops tight below $0.2950 support, with targets at the $0.3050 resistance zone.
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.
