XLM Dives 3% as Selling Pressure Intensifies and Support Breaks

XLM has fallen by approximately 3% amid intensifying selling pressure, driven by a sharp selloff in the final hours of trading on Aug. 20. The token breached key support levels, including the critical $0.39 threshold, marking a continuation of bearish momentum that has persisted over the past 24 hours. The decline was most pronounced during the last trading period, when the price dropped from $0.40 to $0.39, a move that signaled a breakdown in prior accumulation interest and reinforced downward bias [1].

Trading data revealed a notable increase in volume, with turnover peaking at 45.04 million during the 13:00 session, significantly above the 24-hour average. This spike in activity is indicative of heavy distribution, particularly from institutional participants, who appear to be accelerating the downward move. The failure of XLM to hold above key resistance levels, coupled with the repeated breakdown of intraday supports, suggests that bearish conditions are likely to persist in the near term [1].

Despite the negative price action, the Stellar Development Foundation has shown ongoing commitment to the ecosystem, having recently invested in Archax, a U.K.-based tokenization platform. This move highlights the project’s long-term growth ambitions. However, broader altcoin weakness and a general lack of positive catalysts have continued to weigh on the asset, leaving it exposed to further downside risk [1].

Technical indicators point to continued fragility in the XLM/USD pair. The decisive breach of the $0.39 support level and the subsequent inability to reestablish price above this level have reinforced bearish sentiment. Volume surged during the most intense phases of the decline, with 4.92 million units traded in a single minute at 14:17, the highest reading of the session. Additionally, zero volume recorded at 14:20 may indicate a potential capitulation event, as traders exhaust their selling positions [1].

The continued formation of lower peaks and the absence of meaningful buying interest suggest that downward momentum remains intact. Investors are likely assessing the likelihood of a short-term reversal, particularly if the selling pressure abates and stabilizing bids emerge. However, without a clear shift in market sentiment, XLM remains vulnerable to further declines in a market environment that continues to favor risk-off positions [1].

Source: [1] XLM Suffers 3% Decline as Intensified Selling Pressure Grips Markets (https://www.coindesk.com/markets/2025/08/20/xlm-suffers-3-decline-as-intensified-selling-pressure-grips-markets)