Stellar's native token XLM experienced significant selling pressure over a 24-hour period, plunging from a session high of $0.398 to a low of $0.380—a 5% swing driven by heavy sell-side activity. The most dramatic capitulation occurred on August 25 at 19:00 UTC when prices tumbled from $0.393 to $0.387, coinciding with 46.16 million tokens changing hands. This volume surge effectively established $0.393 as a formidable resistance zone.
The selloff peaked an hour later as XLM tested the $0.380 support level on unprecedented trading volume of 95.27 million tokens—115% above average—confirming this level as critical for bulls. Despite the pressure, XLM demonstrated resilience by rebounding to $0.389 by session close, underscoring strong buyer demand at the $0.380 floor.
Technical analysis reveals XLM is forming an inverse head and shoulders pattern, with crypto analyst Ali Martinez noting the token "still needs one more dip before the breakout to $1." The pattern shows a left shoulder earlier this year, a head in May and June, and a developing right shoulder through August. Support sits near $0.36 (aligned with the 0.618 Fibonacci retracement), while the neckline resistance is around $0.50. A confirmed breakout above $0.50 could open targets at $0.62, $0.82, $0.94, and $1.10 based on Fibonacci projections.
Market indicators show neutral momentum with RSI at 44 (below the 50 midpoint) and MACD near zero values suggesting consolidation. Trading volume decreased 10% to $465 million while open interest fell 5% to $314 million. Liquidation data shows minimal activity with $10K in short liquidations versus $1K in long liquidations across major exchanges.
Broader developments include a recently filed U.S.-based crypto ETF (Canary American-Made Crypto ETF) that aims to spotlight homegrown digital assets including Stellar, potentially opening doors to institutional capital. The ETF could expand institutional exposure opportunities for XLM and other U.S.-origin tokens.