XLM Drops Below Crucial $0.285 Support Level as Bears Regain Control

Stellar experienced selling pressure during Tuesday’s session, with XLM decreasing from $0.2846 to $0.2812 due to institutional distribution at elevated levels. The token established a range of $0.0189, reflecting 6.7% volatility, which indicated increased trader uncertainty around current price levels.

The breakdown intensified at 14:00 when trading volume surged to 76.24 million tokens—115% above the 24-hour average of 35.4 million. The price tested resistance near $0.290 before sellers outnumbered buyers, driving XLM below the crucial $0.285 support zone that had supported previous consolidation attempts.

Recent 60-minute data indicates XLM fell from $0.289 to $0.281, marking a sharp 2.8% decline characterized by lower highs and lower lows. Bears took control during pivotal moments at 15:44 and 15:47, with volume surpassing 1.9 million as the price action decisively broke below the $0.285 level.

Key technical levels signal breakdown risk for XLM

Support/Resistance Analysis:

• Primary resistance established at $0.294 following session highs.
• Critical support zone now at $0.281 after decisive breakdown.
• Secondary support target identified in $0.278-$0.280 range.

Volume Analysis:

• 24-hour volume climbed 26.06% above 7-day average during breakdown.
• Peak institutional activity at 76.24M shares coincided with resistance rejection.
• Elevated selling pressure maintained above 1.9M during key breakdown moments.

Chart Patterns:

• Clear trading range between $0.281-$0.294 established during session.
• Lower highs and lower lows pattern confirmed bearish momentum shift.
• Failed breakout attempt validated distribution thesis at higher levels.

Targets & Risk Management:

• Immediate downside target: $0.278-$0.280 support zone.
• Risk level for any bounce attempts: $0.285 former support now resistance.
• Volume confirmation required above 2M for sustained directional moves.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see RialCenter’s full AI Policy.