South Korean crypto exchange Upbit temporarily halted trading of Stellar’s XLM token on Tuesday as a precaution while the Stellar network prepares for its Protocol 23 upgrade.
This scheduled upgrade, set for Sept. 3, aims to improve scalability and speed up transactions, leading several exchanges to implement stability measures during the transition.
In the 24 hours prior to the upgrade, XLM fluctuated between $0.36 and $0.37, with trading volumes spiking as it tested resistance at the higher end of that range.
Despite several attempts to surpass $0.37, selling pressure capped prices, while solid support emerged around $0.36. Analysts believe this consolidation indicates institutional accumulation, as market participants closely monitor for a significant breakout.
The last hour of trading before the suspension featured increased volatility, with XLM briefly reaching $0.37 before retreating to $0.36. This price movement highlights the network’s significance in cross-border payments and growing institutional interest in digital asset infrastructure.
Broader momentum is also being driven by increasing interest in central bank digital currencies and enterprise blockchain adoption, including partnerships involving Hedera.
With the Protocol 23 upgrade underway, traders are focusing on two critical levels: a $0.45 resistance, which XLM has struggled to breach on four occasions since June, and a $0.30–$0.32 support zone, seen as a potential accumulation area. Market observers note that the outcome of the upgrade could determine whether Stellar finally breaks through its ceiling or retreats to rebuild support at lower levels.
Principal Technical Indicators
- Price Parameters: XLM traded within a $0.36-$0.37 range during the 24-hour period with 3% aggregate volatility.
- Volume Assessment: Peak trading activity of 28.91 million during resistance testing at the $0.37 mark.
- Support/Resistance Dynamics: Strong resistance established at $0.37 with support remaining solid around $0.36.
- Breakout Configurations: Multiple unsuccessful attempts to maintain valuations above the $0.37 resistance level.
- Institutional Participation: Volume spikes at key technical levels suggest accumulation patterns among savvy market participants.
Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see our full AI Policy.
Leave a Reply