The price of Stellar (XLM) registered an abrupt decline of 7.7% between November 3 and 4, 2025. This movement coincided with the loss of the critical support level at $0.28, according to market data. The situation was aggravated by a simultaneous XLM price drop and volume increase, suggesting a significant liquidation.
The drop below $0.28 triggered a cascade of sales. This event drove trading volume up by an extraordinary 483% during the episode. This massive spike indicates a concentrated risk transfer rather than a gradual correction. Market sources suggest that large-scale sales, likely from institutional players, accelerated the loss of support. Interestingly, this technical correction overshadowed recent network upgrades, such as Protocol 23. That upgrade had registered a 15% increase in an associated indicator but failed to stop the market reaction.
This pullback in XLM is particularly noteworthy. It occurred while Bitcoin and Ethereum showed slight gains, highlighting a clear divergence in the altcoin market. Losing a technical support like $0.28 is relevant for traders. These levels represent zones where demand had previously managed to halt declines. Its breach usually attracts more selling pressure, as a key technical reference for managing positions is lost.
Are Stellar’s fundamentals disconnected from its price action?
The combination of the support break and the volume spike anticipates greater intraday volatility for XLM. It also suggests lower immediate liquidity below the lost level, complicating order execution. On the other hand, this situation complicates risk management for custodians and brokerage houses. They must now preserve their clients’ margin requirements in an environment of widening spreads. Furthermore, products in the digital economy that use XLM as collateral could face stress if the decline deepens.
Institutional selling pressure appears to have been the trigger for this price adjustment. In the short term, monitoring volume and institutional activity will be decisive in evaluating if XLM stabilizes a new support. Product managers and compliance teams must prioritize the traceability of flows and margin controls. The market will watch whether the XLM price drop and volume increase was a one-off liquidation event or the start of a deeper downtrend.
