Upbit temporarily paused trading in Stellar’s XLM token on Tuesday as the network underwent its scheduled Protocol 23 upgrade. The halt was a precautionary measure while validators and exchanges coordinated the transition to a faster, more scalable ledger.
In the 24 hours before the suspension, XLM traded in a tight band between $0.36 and $0.37. Volume spiked to roughly 28.91 million during attempts to test the upper range, but persistent selling pressure kept price from closing above $0.37, while support held near $0.36.
Traders and analysts interpret the consolidation as a possible sign of institutional accumulation, with larger participants buying into the dip but not yet allowing a decisive breakout. The final hour of trading before Upbit’s suspension showed heightened volatility: XLM briefly touched $0.37 before retreating.
Exchanges often pause tokens during major protocol upgrades to avoid forks, replay attacks or out-of-sync ledgers; Upbit’s move follows industry practice and aims to protect user funds while nodes finalize consensus changes. On-chain metrics and exchange reserves will be watched in the coming days — falling exchange balances could confirm accumulation while rising outflows might signal redistribution.
Beyond immediate price action, the upgrade matters because Stellar is positioned as an infrastructure layer for cross-border payments. Growing interest in central bank digital currencies and enterprise blockchain projects has increased scrutiny on network reliability during protocol changes.
Two technical levels bear watching: a longer-term ceiling near $0.45 — which XLM has failed to clear four times since June — and a support zone around $0.30–$0.32 that could attract accumulation if the market cools. Observers say the success of Protocol 23 could be the catalyst XLM needs to challenge the $0.45 resistance, or it could prompt a pullback to rebuild base support.
Risk note: protocol upgrades can trigger unpredictable volatility and temporary liquidity shifts. Traders should size positions appropriately, monitor order-book depth, and avoid assuming past patterns will repeat. This is not investment advice.
Source: CoinDesk. Read the original coverage for full details.