- XLM fell back to $0.4015 soon after, losing earlier gains due to heavy sell orders.
- Trading volumes spiked, with over 1.4 million tokens exchanged in just one minute, signaling significant institutional activity.
- The move followed news that Bitcoin.com Wallet integrated Stellar and its DeFi tools, broadening XLM’s payment capabilities.
- Technical indicators show resistance near $0.41 and support at $0.40, while recent price action suggests possible additional downside.
Stellar’s XLM token experienced a rapid price reversal on October 3. The token hit a session high of $0.4041 in the afternoon before strong selling pressure pulled it back to $0.4015 within minutes.
The drop was marked by very high trading volumes. According to the original report, more than 1.4 million tokens changed hands in a single minute between 14:00 and 14:01 UTC. This spike in volume pointed to institutional selling as XLM reached a resistance level.
The price reversal happened after an earlier announcement that Bitcoin.com Wallet had integrated Stellar and its decentralized finance (DeFi) protocols, expanding the use cases for XLM in payments and DeFi services.
Technical analysis noted significant resistance for XLM in the $0.41 zone. The price failed to sustain above this level and encountered repeated sell orders. At the same time, support was observed near $0.40, where buyers stepped in several times. The report also identified a phase of consolidation between $0.40 and $0.41, meaning XLM traded within a narrow range as market participants took positions.
The trading action formed a bearish reversal pattern, which analysts linked to heavy token distribution by institutional players at the top of the session. Seasonal market history suggests October is often a positive month for cryptocurrencies, which could slow any further losses according to the report, but near-term pressure on XLM remains.
Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to CoinDesk’s standards. For more information, see CoinDesk’s full AI Policy.
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