Stellar’s native token, XLM, has just sent shockwaves through the crypto market after crashing below a key support level, sparking fears of further downside. In the past 24 hours, trading volume has more than doubled, signaling that traders and whales are actively repositioning as volatility heats up.
Breaking Support Levels
XLM had been holding firm around its long-standing support, but sellers finally overpowered buyers, dragging the price lower. This breakdown has raised concerns that Stellar could be entering a new bearish phase unless it can quickly reclaim its lost levels. Analysts warn that a failure to bounce soon may open the door to deeper corrections in the coming days.
Trading Volume Surge
What makes this move particularly significant is the massive increase in trading volume—a clear sign that market participants are bracing for big swings. Doubling in just 24 hours, this surge suggests heightened activity from both retail traders and institutional players looking to capitalize on XLM’s volatility.
Market Sentiment Turns Cautious
While Stellar remains one of the leading blockchain projects focused on cross-border payments and financial inclusivity, its token is now under pressure. Social media chatter has spiked, with traders debating whether this breakdown is a temporary shakeout or the beginning of a longer trend.
What’s Next for XLM?
Bullish case: If XLM can quickly reclaim support, it could trigger a relief rally and attract bargain hunters.
Bearish case: Continued selling pressure could push the token toward its next major support levels, creating fresh lows for 2025.
For now, all eyes remain on Stellar’s price action and whether the bulls have enough strength to defend against further losses.
