XLM Drops 5% Amid Heavy Institutional Selling Pressure
Stellar’s XLM token experienced a 5% decline, dropping from $0.39 to $0.38 between October 8 and 9. This decrease was driven by significant institutional activity, with volumes reaching 35.51 million, suggesting strong distribution pressure.
- XLM broke below the critical support level of $0.38, indicating a shift in market sentiment.
- A descending channel pattern is forming, with repeated rejections at $0.38 showing bearish control.
- The final hour of trading on October 9 saw an additional 1% drop, marked by volume spikes at 13:52 and 14:01, pointing to coordinated institutional selling.
Technical Indicators Signal Further Weakness
- Institutional-grade volume of 35.51 million exceeded standard metrics, confirming distribution pressure.
- Consistent lower highs form a downtrend, indicating systematic selling by institutions.
- Resistance at $0.39 where institutional selling emerged during recoveries.
- Volume spikes during declines suggest coordinated institutional strategies.
- Descending channel formation shows persistent lower highs at resistance levels.
- Continued attempts to recover near $0.38 are met with strong resistance.
- Significant volume recorded at key times (1.34 million at 13:52 and 1.43 million at 14:01) confirms institutional involvement.
- Momentum indicators point to ongoing downside pressure towards the $0.38 threshold.