XLM Price Drops 5% as Critical Support Levels Break Down - Technical Analysis

Stellar's XLM cryptocurrency experienced significant downward momentum over the past 24 hours, declining 5% from $0.39 to $0.38 between October 8 and October 9. The sell-off occurred alongside substantial institutional trading activity, with volumes reaching 35.51 million - significantly above average levels - confirming strong distribution pressure. The breakdown below the crucial $0.38 support level indicated a clear sentiment shift as trading intensified within a narrow $0.019 range. Technical analysis revealed a descending channel pattern forming, with repeated rejections near $0.38 suggesting continued bearish dominance. During the final trading hour on October 9, XLM lost an additional 1%, with notable volume spikes at 13:52 and 14:01 indicating coordinated institutional selling. Market analysts attributed this movement to ongoing liquidation across professional trading desks rather than short-term retail activity. Technical indicators point to continued weakness: - Critical support failure at $0.38 accompanied by institutional-grade volume of 35.51 million - Established downtrend pattern with successive lower highs indicating systematic distribution - Resistance zone formed at $0.39 where institutional selling consistently emerged - Above-average volume during price reversals confirming coordinated distribution strategies - Descending channel formation with lower highs at key resistance levels - Failed recovery attempts near $0.38 met with institutional supply - Volume concentration during decline phases confirming institutional participation - Momentum indicators suggest continued downside pressure toward $0.38 support