Stellar surged from $0.36 to $0.39 during a 24-hour trading period that ended Wednesday before reversing course in what traders characterized as a classic profit-taking event. The 7% advance came on volume of 56.77 million tokens, nearly twice the daily average of 29.36 million, indicating participation by institutional investors according to market data. The rally peaked at 1:00 p.m. UTC on Oct. 1 before sellers drove prices back to $0.37, erasing most gains accumulated during earlier sessions.
What to Know:
- Stellar volume doubled to 56.77 million tokens during the advance, suggesting institutional buying activity before the reversal
- Price support formed at $0.37 during the initial climb, with resistance at $0.38 converting to support before the breakdown
- The selloff at 1:41 p.m. UTC dropped prices by two cents in under 30 minutes, creating a lower low that disrupted the upward pattern
Price Action Reveals Institutional Footprint
The most pronounced movement began at 8:00 a.m. UTC when Stellar accelerated from $0.37 to $0.38 on what traders described as exceptional buying pressure.
That level held through subsequent hours, with volumes exceeding 55 million during the 9:00 a.m. and 11:00 a.m. sessions. The sustained demand transformed resistance near $0.38 into support while establishing a series of higher lows, a pattern traders often interpret as accumulation by larger investors positioning ahead of key resistance zones.
The advance continued through midday, with Stellar briefly touching $0.39 before encountering selling pressure.
During the final hour, the token retreated to $0.37 as traders began exiting positions. The sharp decline at 1:41 p.m. UTC represented the session's most aggressive selling, with prices falling two cents in less than half an hour.
Volume readings during the decline phases at 1:18 p.m., 1:44 p.m., and 1:49 p.m. exceeded 1.3 million, suggesting coordinated profit-taking rather than panic selling. Market data showed zero volume at 2:09 p.m., indicating exhaustion and potential consolidation ahead. Institutional traders appeared to secure profits following the rapid climb, raising questions about the durability of recent gains.
Technical Patterns Suggest Uncertain Path
The session underscored broader volatility affecting cryptocurrency markets as digital assets navigate macroeconomic pressures. While Stellar briefly challenged the $0.40 psychological barrier, its swift rejection demonstrated the difficulty tokens face in sustaining rallies. Traders now monitor whether $0.37 can function as durable support or if the breakdown signals additional weakness.
The price breakout on Oct. 1 carried volume considerably above the 24-hour average, establishing what technical analysts view as robust support at the $0.37 level during the initial surge.
The resistance-to-support conversion around $0.38 validated institutional accumulation patterns observed throughout the advance. Higher lows maintained through most of the trajectory suggested underlying demand before the final reversal disrupted the structure.
Cryptocurrency is a digital or virtual form of currency secured by cryptography, operating on decentralized networks based on blockchain technology. Unlike traditional currencies issued by governments, cryptocurrencies rely on distributed ledgers to record transactions across multiple computers. Volume in crypto trading represents the total number of tokens exchanged during a specific period, serving as a key indicator of market interest and liquidity. Support and resistance levels mark price points where buying or selling pressure historically concentrates, helping traders identify potential reversal zones.
Closing Thoughts
The volatile session leaves Stellar at a technical crossroads, with the $0.37 support level now critical for maintaining near-term stability. Failure to hold that floor could signal further declines, while a recovery above $0.38 might renew bullish momentum. Traders await confirmation of whether institutional buyers will return or if profit-taking pressure continues to dominate price action.