Stellar’s native token, XLM, experienced a modest decline of 0.4%, closing at $0.3123 as of 14:00 UTC on October 23. The cryptocurrency traded within a relatively tight range of $0.0132 (4.2%) over the previous 24 hours, reflecting fluctuating but constrained market activity.
Trading volume surged sharply on October 22 at 21:00 UTC, with 62.1 million XLM tokens exchanged—a volume spike approximately 180% above its typical average. This sudden increase in trading triggered a selloff from $0.3081 down to a crucial support level at $0.3027, which now acts as the lower boundary of the coin’s current trading band.
Despite a brief recovery, XLM encountered consistent technical resistance. Prices rallied back toward the $0.3160 mark, consolidating just above $0.3120 before forming a double-top pattern at $0.3147, a chart formation that suggests a possible pause in the upward momentum. Renewed selling pressure emerged in the session’s final hour, pushing the price below $0.3131 and confirming a continuation of the sideways trend with short-term bearish undercurrents.
On the fundamental side, market attention centered around reports highlighting cooperative efforts between Stellar and Ripple, two prominent players in the crypto payment space. Both firms have been working closely with the International Rescue Committee (IRC) but with distinct humanitarian approaches. Ripple focuses on facilitating donations, whereas Stellar directs efforts through its Aid Assist program, which aims at distributing cash aid efficiently.
Technical Analysis Overview:
– Support Levels: The $0.3027 zone has demonstrated robust support, validated by the substantial volume spike that tested this level.
– Resistance Levels: The primary resistance is established at $0.3147, confirmed by the recent double-top pattern formation. A secondary resistance lies just above at $0.3160.
– Volume Insights: The notable 62.1 million token volume spike played a key role in defining support near $0.3027; meanwhile, a 619.7K volume increase in the session’s final moments corresponded with the break below $0.3131.
– Chart Patterns: The formation of the double-top at $0.3147 points to a potential reversal or continuation of range-bound trading between $0.3027 and $0.3160.
Looking ahead, a decisive break under the $0.3027 support could signal further downside risks, potentially extending losses to lower levels within the trading range. Conversely, reclaiming the $0.3147 level would be necessary to challenge the $0.3160 resistance and potentially open the door for moderate upward movement.
Overall, XLM remains in a period of consolidative trading amid significant volume events and evolving fundamental developments linked to Stellar’s collaboration with Ripple. Market participants are observing how this partnership, emphasizing humanitarian and payment solutions, may influence longer-term momentum.
