XLM Price Drops Below Critical Support Amid Institutional Selling - Stellar Analysis

Stellar's XLM token has declined below crucial support levels during institutional selling activity, indicating broader market weakness. Between September 18th and 19th, XLM dropped 3.58% from $0.40 to $0.39, with trading volumes exceeding the 24-hour average of 22.33 million tokens. Market analysts attribute this movement to concentrated institutional selling during overnight sessions and the breach of the key $0.40 support level. Despite the downward pressure, XLM showed slight recovery in the final trading hour, gaining 0.05% as buyers defended the $0.39 level. However, technical analysis reveals a bearish trend with resistance solidifying around the $0.40 mark, where previous recovery attempts have failed amid high volume. Technical indicators suggest persistent downward pressure with a pattern of lower highs. Concurrently, institutional adoption of Stellar's infrastructure continues expanding. The Stellar Development Foundation showcased significant developments at its Meridian conference in Rio de Janeiro, including Centrifuge's $20 million tokenized real-world assets initiative and Mercado Bitcoin's $200 million tokenization program. Additionally, PayPal's USD stablecoin has launched on the Stellar network, enhancing institutional access. Market indicators show institutional repositioning with XLM breaking critical support at $0.40, establishing a clear bearish trend with lower highs formation throughout the trading session. Resistance levels have consolidated at $0.40 where recovery attempts faced institutional rejection. Intraday volatility reached a $0.003 range between session peak and trough, with volume surging to 1.13 million units during selling pressure before showing signs of stabilization.