XLM Price Dips 8% as Institutional Investors Trim Holdings
XLM Faces Selling Pressure: Institutional Investors Retreat
Stellar's native token, XLM, experienced significant selling pressure, leading to an 8% decline from $0.39 to $0.36 between August 28 and August 29. Market data indicates a surge in trading volume, with over 41.89 million XLM changing hands as large holders reduced their positions.
Stellar Network Growth and Partnerships Remain Robust
Despite the price volatility, the Stellar Development Foundation reports continued network expansion. The platform is approaching 10 million registered accounts, driven by a daily increase of 5,000–6,000 new corporate wallets. Strategic alliances with MoneyGram International and Circle continue to fuel the adoption of Stellar's payment infrastructure for cross-border transactions.
Intraday Volatility and Recovery
Analysts noted sharp intraday fluctuations on August 29. XLM initially dropped 1.38% before experiencing a 1.27% recovery in the following 15 minutes, closing the session at $0.361 after briefly touching $0.357. This suggests some buyers viewed the dip as a potential buying opportunity.
Market Sentiment vs. Fundamentals
According to a source close to Stellar’s corporate strategy, the recent market turbulence is primarily driven by sentiment, not a reflection of underlying business fundamentals. The late-session rebound implies that certain large buyers retain confidence in Stellar's long-term viability within the blockchain-based financial landscape.
Technical Indicators Show Mixed Signals
- XLM declined 7.74% from $0.39 to $0.36 during the specified trading period.
- The daily trading range spanned $0.031, between a high of $0.387 and a low of $0.356.
- Peak selling occurred during European trading hours on August 29, surpassing the 24-hour average volume.
- Technical resistance was observed near the $0.373 level.
- Support levels were identified at $0.375 and $0.362.
- Elevated trading volume during the decline suggests potential institutional accumulation.
- The final hour saw a 1.27% recovery on volume exceeding 2 million units, potentially indicating corporate treasury accumulation.