XLM Breaks Key Resistance Level with Increased Trading Volume
XLM traded within a narrow range of $0.39 to $0.41 until August 21, indicating a consolidation phase. Sellers capped the price at $0.41, while buyers defended support at $0.40, resulting in low volatility. A gradual decline in volume suggested traders were preparing for a breakout.
The breakout occurred in the last hour of trading, with XLM rising from $0.396 to $0.399. Strong buying momentum broke through the $0.398 resistance level, with over 1.5 million tokens traded, setting new intraday highs and indicating a short-term bullish trend.
Market dynamics favor payment-focused tokens due to evolving stablecoin frameworks and rising inflation risks linked to supply chain issues. XLM’s recent performance reflects increased interest in blockchain-based settlement options.
Technical Indicators Signal Bullish Momentum
- Price broke through $0.398 resistance with strong volume confirmation
- Trading range of $0.01 or 3% indicates contained volatility before breakout
- Volume spike exceeded 1.55 million during final hour, suggesting institutional interest
- Support established around $0.40 with multiple successful bounces
- Declining volume trend reversed during breakout, indicating renewed conviction