XLM Price Rally Faces Key Resistance as Volume Spikes and Late Selling Raises Risks

Stellar’s XLM posted a solid performance on Tuesday, climbing 3.53% to $0.2508 and outperforming most major cryptocurrencies. The move came alongside a notable rise in trading activity, with volume jumping 23% above the weekly average. This uptick signaled stronger market participation as traders positioned for a potential breakout despite the absence of major fundamental news from the Stellar ecosystem.

The price rally brought XLM directly into a key resistance zone at $0.2540, creating a critical technical barrier for bullish momentum. Intraday price swings neared 5%, with the market testing both upside and downside levels throughout the session. Overnight, XLM saw one of its most significant developments: a surge of 70.4 million traded tokens, nearly double its 24-hour average. This influx of activity helped reinforce short-term support around the $0.2443 level.

Sentiment shifted late in the trading day as large sell orders hit the market. At 16:58, XLM dropped from $0.2477 to $0.2449 on a quick 2.8 million-token spike, signaling increased profit-taking and emerging downside pressure. With fundamentals relatively quiet, traders are now watching whether XLM can reclaim the $0.2540 resistance level or if the late-session weakness sets up a potential retest of deeper support near $0.2420.

Technical indicators remain mixed. Primary support is holding at $0.2422, while resistance remains firm at $0.2540. Volume trends suggest continued volatility, especially as institutional flow patterns shifted into sell-side pressure late in the day. If bearish momentum continues, a decline toward the $0.2420 region becomes increasingly likely. Conversely, any strong volume-driven rebound above resistance could reopen the path toward further gains.

Overall, XLM traders should brace for elevated volatility as market participants test the boundaries of the current consolidation range.