Stellar News Today: Stellar's Plunge Tests $0.40 Support as Institutions Re-enter

Stellar (XLM) experienced a 23% decline to $0.29 after a brief flash drop to $0.20, followed by a rebound. The token traded near $0.4168 earlier, but subsequent selling pressure pushed it below key support levels. Technical indicators, including the Relative Strength Index (RSI) at 28.14, suggest oversold conditions, while the price has fallen below the 23.6% Fibonacci retracement level and the 30-day exponential moving average (EMA). On-chain data from CoinGlass revealed $79 million in long positions at risk of liquidation, with open interest declining 11.6%, signaling reduced trader confidence. Institutional activity, however, showed signs of recovery, with open interest surpassing $300 million and renewed buying at lower levels. Analysts highlighted the critical $0.40 support level, with a breakdown potentially targeting $0.32, while a rebound could test $0.44 and $0.47 resistance.