Bearish Momentum Builds Despite Strong Trading Volumes
Stellar (XLM) has come under pressure in recent sessions, with the token recording a 3% decline against USDT, slipping toward the $0.39 zone. The move reflects broader weakness across the digital asset market, where risk sentiment has remained fragile in August.
Technical indicators highlight a decisive test of the $0.39–$0.40 support range. A failure to hold this zone could expose XLM to further downside toward $0.36, while immediate resistance is positioned near $0.45, where sellers have previously regained control.
A recent pattern on the four-hour chart shows that XLM broke down from a falling wedge structure, briefly recovering before meeting strong resistance and retracing back into the green support zone. Analysts note that this consolidation phase could either trigger a rebound or reinforce the bearish structure depending on market flows.
Trading volumes have shown a notable surge to 16.28 million XLM, signaling heightened activity and possible signs of capitulation pressure. While some traders see volume spikes as a precursor to price stabilization, the immediate outlook remains cautious.
“Sellers are still dominating the market, and without a decisive reclaim above $0.42, Stellar is likely to remain under pressure,”According to BITX technical analyst. “However, increasing trade volume also suggests that accumulation may be quietly underway at these lower levels.”
The weakness in Stellar aligns with the broader crypto market, where intensified selling pressure has weighed heavily on altcoins. Persistent macro uncertainty and declining liquidity conditions continue to cloud investor confidence.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.