XLM Token Drops After Brief High, Volume Surges to 1.4M
Stellar's XLM token experienced a sharp reversal on Oct. 3 after hitting new highs. The price rose to $0.4041 but dropped back to $0.4015 due to heavy selling post-14:00 UTC, negating earlier gains.
- More than 1.4 million tokens were traded in one minute during the sell-off, indicating institutional selling at resistance and potential for further declines.
- The decline follows Bitcoin.com Wallet's integration of Stellar and its DeFi protocols, expanding XLM's payment capabilities.
- October is historically strong for crypto, which may provide support despite current pressures.
Technical Indicators Summary
- High trading volume noted during the initial rise with a significant spike over 1.4 million tokens between 14:00-14:01.
- Resistance identified around $0.41 where selling pressure was consistent.
- Support found near $0.40 as buying interest appeared multiple times.
- A consolidation pattern has formed between $0.40-$0.40, suggesting potential accumulation.
- A bearish reversal pattern confirmed by institutional distribution at session peaks.