Stellar’s XLM showed sudden, heavy trading on Sept. 4–5, pushing prices through a short-term resistance before a late-session reversal — a pattern that increases the odds of near-term volatility for traders.
Over a 24‑hour stretch XLM rose from $0.36 to a session high of $0.37 before closing back at about $0.36. The move came alongside unusually large on‑chain and exchange volumes: buying interest held support at $0.35 on the evening of Sept. 4 with volumes topping 16.9 million XLM, then exploded to roughly 28.03 million at 07:00 and peaked near 82.75 million around midday on Sept. 5.
That burst of demand produced a clear breakout above the $0.36 ceiling, driving the intraday high. But the final trading hour saw intense selling that erased much of the gain, leaving a slim net close roughly 1% above the session open. Technically, this leaves XLM in a mixed state: support appears solid at the $0.35 level, but the speed and scale of the reversal signal short‑term uncertainty.
Fundamentally, Stellar’s outlook has stronger backing than many peers: XLM has recorded roughly a 288% gain over the last year as institutional interest grows around upgrades such as Protocol 23 and cross‑border payment use cases. Those developments could attract longer‑term capital, but competition from emerging PayFi platforms adds pressure on market share and adoption pace.
What this means for market participants: elevated volumes and the pattern of breakout followed by rapid sell‑off increase the probability of continued volatility. Traders should watch the $0.35 support and the $0.36–$0.37 range for follow‑through; a sustained move above the highs on strong volume would suggest renewed bullish momentum, while a failure to hold support could accelerate downside.
Risk note: This is market analysis, not investment advice. High intraday volumes can precede sharp reversals; position size and stop management are important when trading volatile assets like XLM.
Source: CoinDesk. Read the original coverage for full details.