- Stellar (XLM) broke the $0.34 support, triggering liquidations and confirming a capitulation signal as trading volume surged to nearly twice the daily average.
- Institutional accumulation appeared between $0.32–$0.33, stabilizing price action and hinting at a technical recovery following intense market volatility.
- Technical models suggest a long-term Elliott Wave setup targeting $1.44 by 2025 if current accumulation sustains above critical support levels.
Stellar $XLM dropped significantly from $0.36 to $0.33 during the 13th and 14th of October. Trading activity picked up and doubled the average daily volume for Stellar. Following this decline, we’re already seeing signs of institutional buying that may signal that the price may stabilize in the near term.
Market Drop and Support Breakdown
Stellar $XLM has breached its key support of $0.34, setting off liquidation events over on several exchanges, which sparked a bout of panic selling driving it further down to a new local low of $0.32. Volume significantly increased to 63.1 million XLM traded, which is double the daily average.
Following the sell-off, Stellar showed signs of market capitulation. Sharp downward movements created temporary oversold conditions. This prompted institutional investors to enter the market, buying at discounted levels between the 13:46–13:47 trading sessions.
The sudden influx of institutional buying lifted $XLM from $0.32 back to $0.33. This recovery indicates a temporary exhaustion of selling pressure. Analysts noted that the market had begun consolidating near resistance, stabilizing trading after initial declines.
Institutional Activity and Accumulation
According to Scopuly’s report, smart money moved into Stellar during the market dip. Institutional investors capitalized on low prices, signaling renewed interest in XLM. These purchases occurred at oversold levels, suggesting careful accumulation rather than speculative trading.
Trading patterns revealed that the market paused after 14:05, with limited transactions. The freeze points to consolidation, as buyers and sellers reassessed positions. Institutional participation appears to have provided a floor, reducing immediate downside risks.
The current trading price is at $0.3383 as this is written, a 3.34% increase over a 24-hour period. XLM continues to have liquidity and investor interest with over $306 million in trading volume over the past 24 hours. The market continues to monitor an institutional presence as they look for further moves.
Technical Observations and Future Prospects
Heavy-volume sell-offs in XLM have historically indicated capitulation phases. In this case, the sharp drop and rapid rebound align with similar patterns seen in previous market cycles. Traders often use these signals to gauge short-term exhaustion of selling activity.
Analysts point to a possible long-term upward trajectory based on Elliott Wave analysis. The report suggests XLM could rally toward $1.44 by the end of 2025 if buying pressure persists. Market conditions and BTC dominance, currently at 58%, remain influential factors for XLM’s price action.
Scopuly tweeted that despite the broader market volatility, Stellar remains resilient. The crypto demonstrates capacity for recovery even after sharp declines. Observers note that major players are closely monitoring price movements and strategically buying during dips.
