XLM Dips Below Support Despite Growing Adoption

XLM Price Slips as Institutional Selling Pressure Mounts

Stellar's XLM token experienced a dip below a critical support level, driven by what appears to be institutional selling activity. This decline underscores broader market vulnerabilities despite positive developments within the Stellar ecosystem.

Between Sept. 18 at 15:00 and Sept. 19 at 14:00, XLM dropped by 3.58%, falling from $0.40 to $0.39. Trading volumes surpassed the 24-hour average of 22.33 million tokens, suggesting heightened selling pressure.

Analysts point to concentrated selling during overnight trading sessions—typically dominated by institutional investors—as the primary catalyst for the breach of the $0.40 support level. This suggests a repositioning of assets in anticipation of clearer regulatory guidelines.

Bearish Trend Persists

Although XLM saw a slight recovery in the final hour of trading, gaining 0.05% as buyers defended the $0.39 level, the overall trend remains bearish. Resistance has consolidated around the $0.40 mark, where previous rebound attempts have failed due to elevated volume. Technical analysis indicates that the pattern of lower highs suggests ongoing downward pressure.

Stellar's Adoption Continues

Despite the price pullback, institutional interest in the Stellar network is expanding. During the Stellar Development Foundation's Meridian conference in Rio de Janeiro, several key initiatives were highlighted:

• Centrifuge deployed a $20 million tokenized real-world assets (deRWA) initiative.
• Mercado Bitcoin announced a $200 million tokenization program.
• PayPal's USD stablecoin went live on Stellar, expanding institutional access to the network.

These developments indicate continued confidence in Stellar's underlying technology and its potential for institutional adoption. Platforms like Codeum are essential to ensuring the security and compliance of these expanding blockchain initiatives.