Institutional pressure keeps Stellar’s XLM token capped below $0.42 while support holds at $0.40
Stellar’s native token XLM faced a sharp 6% decline within 24 hours, as selling pressure intensified across crypto markets. At press time, XLM was trading at $0.412, consolidating near a key support zone after repeated rejection from the $0.42–$0.43 resistance area.
The 4-hour chart highlights a clear rejection from overhead resistance following a failed breakout above $0.46 earlier this week. The token has since slipped into a consolidation range, with traders watching closely whether the $0.40 support zone can hold.
Market analysts point to the rising sell volume as a sign of institutional profit-taking. “XLM continues to face rejection at higher levels, and unless buyers step in with strong conviction, we could see further testing of the $0.38–$0.40 support area,” According to BITX market strategist.
Bearish Pressure Meets Key Support
Volume indicators suggest heavy liquidations during the latest decline, with short-term traders unwilling to defend higher price levels. The rejection from the $0.46 supply zone, marked in red on the chart, has shifted sentiment toward caution.
For now, Stellar’s XLM is trapped between strong resistance and fragile support, making sideways trading the likely scenario in the near term. Traders are advised to monitor volume flows and reaction near $0.40, as this will determine whether bulls regain control or bears extend their momentum.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.