Stellar’s XLM Falls Below Critical Support Level Despite Growing Interest from Institutions

Stellar’s XLM token dipped below a crucial support level amid institutional selling, indicating broader market weakness. Between Sept. 18 at 15:00 and Sept. 19 at 14:00, XLM decreased by 3.58%, dropping from $0.40 to $0.39, with trading volumes exceeding the 24-hour average of 22.33 million tokens. Analysts noted significant selling activity during overnight sessions, typically influenced by institutional investors, and the breach of the $0.40 support level as signs of repositioning ahead of regulatory developments.

Despite the downturn, XLM experienced slight relief in the final hour of trading, gaining 0.05% as buyers defended the $0.39 level. However, the overall trend remains bearish, with resistance building around the $0.40 mark, where previous attempts at recovery have failed on high volume. Technical analysts cautioned that the formation of lower highs suggests ongoing downward pressure.

Concurrently, institutional interest in Stellar’s infrastructure is growing. During its Meridian conference in Rio de Janeiro, the Stellar Development Foundation highlighted adoption initiatives, including Centrifuge’s launch of a $20 million tokenized real-world assets program and Mercado Bitcoin’s announcement of a $200 million tokenization initiative. Furthermore, PayPal’s USD stablecoin was launched on the Stellar network, broadening institutional access.

Market Indicators Reflect Institutional Repositioning

• XLM breached critical support at $0.40 with trading volumes exceeding 22.33 million average.
• Clear bearish trend established with lower highs formation throughout the trading session.
• Resistance levels consolidated at $0.40 where recovery attempts faced institutional rejection.
• Intraday volatility reached $0.003 range between $0.39 session peak and $0.39 trough.
• Volume surge to 1.13 million units during selling pressure before institutional stabilization.
• Recovery momentum emerged with 0.05% gain in final 60 minutes of trading activity.

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