TL;DR
- Stellar (XLM) trading volume increased by 37% to $227.7 million in the last 24 hours, coinciding with a price rebound.
- Despite the 5.46% rally over 24 hours, XLM is still trading below the critical resistance level of $0.30.
- The inability to sustain previous bullish momentum has left XLM in a defensive position, with the risk of falling to $0.20.
In the last 24 hours, the Stellar (XLM) asset experienced a significant increase in its trading volume, alongside a price rebound attempt following a complicated month for the market. Last month, XLM lost more than 13% amidst a bearish sentiment that enveloped the community. However, market events in the last few hours suggest a change in dynamics.
At the time of writing this note, CoinMarketCap data indicated that Stellar’s trading volume reached a 37% surge, pushing it up to $227.7 million. This jump in volume not only silenced those betting on a decline but also coincided with a reversal in XLM’s price. Stellar recorded an overall increase of 5.46% during this period and trades at $0.2537 at the time of writing, but the price sent mixed signals with an initial 2% drop from its intraday peak of $0.2625, likely due to volatility.
Stellar XLM Volume Surges and Challenges Bearish Sentiment
Stellar’s volume remains vulnerable despite its price rebound. The asset is holding below critical price levels and has failed to reclaim the $0.30 resistance mark. In fact, since November 13, XLM has been unable to reach $0.28.
The persistent bearish context negatively impacted the altcoin segment throughout the last month. Market participants hope that the current volume increase will last and lead to a sustained price ascent. However, recent history warns against premature optimism. Less than 10 days ago, similar optimism spread when XLM recorded an 8% gain but couldn’t maintain the upward momentum.
The inability to sustain previous rallies has left XLM in a defensive position. If the momentum doesn’t hold now, Stellar could slip and threaten the $0.20 support level. Only a sustained price rally will allow XLM to recover its previous market capitalization level. Proponents and the market are watching closely.
