Stellar Plunges 3% as Protocol 23 Upgrade Fails to Spark Rally

Stellar XLM$0.3558 continued to slide lower over the past 24 hours, with price action underscoring a clear bearish bias. Between Sept. 3 at 15:00 and Sept. 4 at 14:00, XLM shed 2.72%, falling from $0.368 to $0.358.

The move came within a tight $0.012 range, reflecting 3.26% intraday volatility. Sellers consistently rejected attempts to push above the $0.362 level, particularly during the Sept. 4 13:00 session, while the $0.357–$0.358 area briefly provided support. Still, mounting downside pressure suggests that the zone may not hold, leaving room for extended weakness.

Market forces appear to be exacerbating Stellar’s recent decline. Despite several bounce attempts, resistance near $0.362 remains firmly intact. These dynamics coincided with the rollout of Stellar’s Protocol 23 network upgrade on Sept. 3, but the technical milestone failed to provide the kind of bullish catalyst needed to counteract prevailing macro pressures.

Institutional sentiment also reflects the cautious tone. On Sept. 2, a wave of liquidations worth roughly $192,000 occurred as XLM slipped from the $0.40–$0.45 range, highlighting traders’ vulnerability to sudden downside moves. That liquidation cascade has since set the stage for the ongoing retreat, which aligns with larger patterns of risk-off positioning by major market players amid geopolitical and monetary uncertainty.

Looking ahead, Stellar faces a crucial test of support. After repeated rejection at the $0.45 resistance level, the token is now drifting toward the $0.32–$0.30 demand zone. Whether this level can attract sufficient buying interest will likely determine XLM’s near-term trajectory. For now, technical and macro signals both point to sustained bearish momentum unless broader sentiment stabilizes.

Technical Indicators Signal Further Weakness

• Price declined from $0.368 to $0.358, representing a 2.72% drop over 24-hours.
• Overall trading range reached $0.012, equivalent to 3.26% volatility.
• Clear resistance established at $0.362 level with multiple rejection attempts.
• High volume of 21.47 million during 4 September 13:00 session exceeded 24-hour average of 16.23 million.
• Support zone identified around $0.357-$0.358 appears fragile.
• Accelerating decline in final trading hours suggests continued selling pressure.
• Volume decreased from peak 28.5 million to 16.7 million shares indicating weakening momentum.

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