Stellar Holds Support At $0.277: Buyers Defend

Stellar Holds Support At $0.277 As Buyers Defend

4 November 2025 at 10: 40

Reading time: 2 minutes

Stellar (XLM) rose to $0,285 on Tuesday, following a significant sell-off. Trading volumes were 11,18% above their 30-day average, with a notable 700% increase in smart contract activity on the network. This recovery marked a clear break from the recent consolidation phase, indicating renewed participation from select institutional investors.

Despite the gains, XLM underperformed the broader crypto market (CD5) by 2,10%. This suggests that the specific conditions within the Stellar network remain a drag, even as overall market sentiment improves. One positive note traders noted was the $5,4 billion milestone in real-world asset tokenization, which highlights the growth of the network's infrastructure. However, the muted buying behavior suggests investors remain cautious, rather than buying excessively.

Technical analysis of price movements

A brief period of capitulation between 15:27 and 15:31 UTC saw XLM drop 5,5% from $0,293 to $0,277, with volume spiking to 12,8 million shares per minute. However, support at $0,277 proved strong, leading to a sharp pullback towards $0,285, as buyers aggressively seized the opportunity following this sell-off.

From a technical perspective, Stellar is under pressure with resistance at $0,3014 after failing to hold support at $0,2900. The current consolidation around $0,281 indicates a certain balance between buyers and sellers. The so-called 887% volume spike during the price drop shows that high volatility prevails, despite the build-up of fundamental momentum.

Critical support is established at $0,277, while strong resistance at $0,3014 is confirmed after the break above $0,2900. The current range of consolidation between $0,281 and $0,285 suggests a wait-and-see attitude from the market, with immediate resistance at $0,2900, which is around $0,0287 or 9,4% below the recent high of $0,3038. Investors should be mindful of the possibility of a retest of the $0,277 support if the consolidation fails, which would entail a scaling up of the risk.

Frequently Asked Questions

What are the key factors that influenced Stellar (XLM)'s recent price rise?
The increase can be attributed to increased activity surrounding smart contracts and improved market sentiment, although specific network issues have kept XLM under pressure.

How important is $5,4 billion in real-world asset tokenization to Stellar's future?
This milestone indicates that the Stellar Network is becoming increasingly valuable to institutional investors and can contribute to the growth of network activity and adoption in the long term.

What are the expectations for XLM price developments in the short term?
Price movements suggest that the XLM price is subject to significant volatility. Investors should closely monitor support and resistance levels, especially for potential recovery phases and pullback risks.

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