XLM Faces Sharp Reversal After Brief Breakout, Support at $0.37 in Focus

Stellar’s native token, XLM, experienced a turbulent trading session over the past 24 hours, highlighting both bullish momentum and sharp volatility. The cryptocurrency surged from $0.36 to $0.39, marking a 7% intraday advance, before reversing to $0.37 amid heavy profit-taking. Trading volumes spiked to 56.77 million, nearly double the daily average of 29.36 million, signaling notable institutional activity behind the moves.

The rally began on October 1 at 08:00 UTC, when buying pressure propelled XLM from $0.37 to $0.38, firmly establishing $0.37 as support. Continued accumulation through the morning sessions reinforced a bullish trend, with $0.38 briefly transitioning from resistance to support. Analysts often interpret such patterns as evidence of institutional accumulation, with larger players positioning ahead of key psychological barriers such as $0.40.

Momentum was confirmed with volume surges exceeding 55 million between 09:00 and 11:00 UTC, producing higher lows and strengthening market structure. However, the bullish narrative quickly unraveled. At 13:41 UTC, XLM dropped from $0.39 to $0.37 in under 30 minutes, erasing much of the day’s gains. Exceptional volume spikes during this decline suggested institutional profit-taking and a breakdown of the uptrend.

A final zero-volume print at 14:09 UTC indicated potential exhaustion, pointing toward near-term consolidation as traders reassess whether $0.37 can hold as reliable support. Failure to maintain this level could open the door to further weakness, while holding firm may encourage renewed attempts toward $0.40.

XLM’s volatile performance underscores the uncertainty across cryptocurrency markets, with macroeconomic headwinds amplifying price swings. Traders now turn their attention to the $0.37 support zone, which will determine whether Stellar can stabilize or face further downside pressure.