XLM faces strong selling momentum despite ongoing technical strength and network upgrades
Stellar Lumens (XLM) fell sharply by 6.25% in the last 24 hours, slipping to $0.316 as investors responded to renewed selling pressure from institutional accounts. The move follows a broader cooling across mid-cap altcoins, even as Stellar’s recent protocol upgrades enhance its enterprise-grade transaction framework.
On the technical chart, XLM is testing a crucial demand zone between $0.28 and $0.31, where buyers previously defended the token after extended downtrends. The market structure shows a descending channel breakout earlier this year, but the asset has since retraced from the $0.45 resistance area, signaling possible exhaustion in short-term bullish momentum.
According to BITX on-chain data analysts, the sell-off coincided with large transactions exceeding $1 million, suggesting institutional liquidation or portfolio rebalancing rather than retail panic. “The current movement appears driven by large wallets reducing exposure amid macro uncertainty,” one analyst noted, adding that “XLM remains fundamentally sound, but liquidity pressure is dictating near-term price action.”
From a technical perspective, the $0.30 level remains the key battleground. A close below this range could open the path toward support near $0.25, last tested during the March correction. Conversely, sustained buying at current levels could push prices back toward the $0.38–$0.42 resistance cluster, where multiple rejection wicks are visible on the daily timeframe.
Despite the decline, market observers point to the network’s ongoing improvements—notably upgrades aimed at faster settlement and enhanced interoperability for business use cases—as evidence of long-term resilience. “Stellar’s fundamental progress is overshadowed by short-term volatility,” said BITX blockchain strategist. “Institutional selling is a cycle, but the protocol’s efficiency upgrades strengthen its long-term value proposition.”
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