Stellar Volume Spikes Despite 2% Drop Amid Bitcoin Dominance Shift

Stellar’s 2.22% price decline coincided with a 115.64% surge in trading volume, reflecting strong market activity despite resistance levels.

Bitcoin’s 57.4% dominance led to a market shift, suppressing altcoin growth, but technicals show Stellar still has upside potential.

Stellar’s recent golden cross and past XRP-related spike highlight growing optimism around institutional adoption and long-term support.

Stellar (XLM) registered a 2.22% decline in price over the past 24 hours, sliding from a high of $0.4235 to a low of $0.389. According to data from CoinMarketCap, XLM is currently priced at $0.3961. Despite the downturn, investor activity remained strong. Trading volume surged by 115.64 percent during the same period, reaching $402.21 million, signaling increased market participation.

The price movement failed to breach the key $0.42 resistance level, yet investors appeared undeterred. The sudden spike in volume suggests renewed buying interest. Analysts point out that increased volume during a price dip often indicates accumulation, which may support a potential rebound. Investor sentiment remains positive even amid heightened market fluctuations.

Bitcoin Dominance Impacts XLM Price Action

The dip in XLM's value is largely attributed to the rise in Bitcoin dominance, which reached 57.4 percent. This development redirected market capital toward Bitcoin, weakening the momentum of several altcoins. While the crypto fear and greed index stayed in neutral territory, the capital rotation created downward pressure on altcoins such as Stellar. Nonetheless, technical indicators imply that room for recovery still exists.

The Relative Strength Index (RSI) currently stands at 48.19, which places XLM in a neutral zone with potential to rise. Additionally, Stellar recently confirmed a golden cross formation. Historically, this indicator suggests long-term bullish momentum when the 50-day moving average crosses above the 200-day moving average. If broader conditions improve, analysts suggest a potential price climb to $0.60, contingent on flipping resistance near the $0.50 mark.

Institutional Interest and XRP Influence May Support Growth

Institutional interest is expected to play a role in future price movements. Stellar’s price experienced a 16% spike after the resolution of Ripple's legal battle with the U.S. Securities and Exchange Commission. That event provided clarity for similar assets and increased investor confidence. Market watchers believe such regulatory developments could spur further institutional adoption of Stellar.

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