TL;DR
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’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.
