Stellar’s XLM token extended its downturn over the past day, sliding 5% from $0.39 to $0.38 between October 8 at 15:00 and October 9 at 14:00. The selloff came amid heavy institutional activity, with volumes reaching 35.51 million — well above average levels — confirming strong distribution pressure.

The breakdown below the key $0.38 support level marked a clear shift in sentiment as trading intensified within a narrow $0.019 range. Market structure analysis showed a descending channel pattern forming, with repeated rejections near $0.38 suggesting sustained bearish control.

During the final hour of trading, from 13:13 to 14:12 on October 9, XLM shed another 1%, with significant volume spikes at 13:52 and 14:01 signaling coordinated institutional selling. Analysts said the move reflected continued liquidation across professional trading desks rather than short-term retail action.

Technical Indicators Signal Further Weakness

• Critical support failure at $0.38 accompanied by institutional-grade volume of 35.51 million exceeding standard trading metrics
• Established downtrend pattern with successive lower highs indicating systematic institutional distribution
• Resistance zone established at $0.39 where institutional selling consistently emerged during recovery attempts
• Above-average volume participation during price reversals confirming coordinated institutional distribution strategies
• Technical chart pattern shows descending channel formation with lower highs at key resistance levels
• Failed recovery attempts near $0.38 consistently met with institutional supply indicating strong overhead resistance
• Volume concentration during decline phases with 1.34 million at 13:52 and 1.43 million at 14:01 confirming institutional participation
• Technical momentum indicators suggest continued downside pressure toward the $0.38 psychological support threshold

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