Stellar (XLM) Navigates Turbulent Trading Landscape Marked by Significant Price Swings and Heightened Investor Activity

Over the past 24 hours, the cryptocurrency recorded a staggering $152 million in trading volume, despite posting a modest decline in price.

Stellar (XLM) has been making headlines in recent days for its staggering trading volume and turbulent price swings. Within a single 24-hour period, the cryptocurrency managed to rack up a remarkable $152 million in trading activity, despite posting a modest decline in price.

This tug-of-war between bullish and bearish forces highlights a pivotal moment for XLM as it tries to sustain momentum amid broader market uncertainty.

Here’s a closer look at the Stellar price action and what traders are watching.

Stellar Clocks $152 Million in Volume as Price Drops 1%

Over the past few weeks, Stellar has shown strength with over 3.6% gains in the past 30 days.

Yet, that upside momentum has been met with stiff resistance as short-term volatility takes center stage. In a single trading session, Stellar’s price jumped from $0.2735 to a high of $0.2804 before sharply retracing to its initial levels. It attempted another rise to $0.2783 but then settled into a narrow sideways pattern, reflecting the indecision in the market.

This roller-coaster performance has left traders and investors on edge. Some see the spike as a reaction to growing interest in Stellar’s capabilities, particularly its fast and cost-effective cross-border payment infrastructure.

However, others interpret the abrupt retracements as signs of sell-side pressure or profit-taking, especially in a market that has been largely driven by speculation.

Despite the back-and-forth price action, Stellar has continued to outperform some of its peers, including Ripple’s XRP, in certain on-chain metrics. A recent surge in network activity and user engagement helped XLM briefly flip XRP in terms of transactional throughput.

This development stirred speculation that Stellar’s ecosystem is quietly gaining traction in the background, even as large-cap cryptocurrencies remain under the microscope of global regulatory agencies.

However, the path ahead remains uncertain. As of the latest figures, Stellar is trading at approximately $0.2768, reflecting a minor daily decline of around 1%.

At the same time, trading volume has dipped slightly by about 8.4%, possibly indicating a short-term cooldown as traders await a clearer direction.

Stellar's Performance in Past 7 Days

What's Next For Stellar Price After Hitting Resistance?

The dramatic price swings have prompted mixed reactions from the crypto community. While some traders are calling this a temporary correction following a healthy rally, others are warning of the potential for deeper consolidation if Stellar encounters more difficulties breaking through the $0.280 resistance zone.

Moreover, market sentiment remains fragile, and many are watching for confirmation of whether this is a simple pause or the start of a longer pullback.

If the sellers manage to exert more pressure and Stellar breaks down below the support level at $0.270, it could open the door for further declines towards the next support zone, which is defined by the lower Fib at $0.260 or the 200 Simple Moving Average (SMA) on the 4-hour chart.

But if Stellar manages to clear the crucial resistance at $0.280 and sustains the move, it could pave the way for a continuation of the uptrend. In this scenario, the Fib at $0.290 or the 1.272 Extension at $0.298 might serve as the next resistance levels to watch out for.

Stellar Price Chart Today

Looking at the technical perspective, the Relative Strength Index (RSI) on the 4-hour chart is currently hovering around 50, indicating that the market is balanced between buyers and sellers.

After a period of consolidation, the Bollinger Bands are beginning to widen, signifying an increase in price volatility.

This aligns with the observations of traders who note that following several days of ranging behavior, Stellar appears poised for a breakout.

Ultimately, the direction of this breakout will depend on which force manages to gain the upper hand: the buyers aiming for higher highs or the sellers looking to push for lower lows.

As the battle between bulls and bears unfolds, all eyes will be on how Stellar reacts to these crucial technical levels and what the broader market trends bring to the table.