Trading in Stellar’s XLM token was temporarily halted on South Korean crypto exchange Upbit this Tuesday as part of precautionary measures ahead of the Stellar network’s upcoming Protocol 23 upgrade, scheduled for September 3. This enhancement aims to improve scalability and increase transaction speeds, with various exchanges implementing stability precautions during the transition period.
In the 24 hours leading up to the upgrade, XLM traded within a tight range of $0.36 to $0.37. Trading volume experienced notable spikes, particularly as the token tested the upper resistance level of $0.37. Despite several attempts to surpass this price point, persistent selling pressure kept XLM’s price from breaking above $0.37, while a strong support level formed at $0.36. Analysts believe that this price consolidation may reflect a trend of institutional accumulation, with market participants keenly observing for potential breakout opportunities.
The final hour of trading just before the suspension saw significant volatility. XLM momentarily peaked at $0.37 before retreating back to $0.36. This activity highlights not only the token’s role in cross-border payments but also its increasing relevance among institutional investors focused on digital asset infrastructure. The broader market for cryptocurrencies is experiencing heightened momentum, bolstered by the rising interest in central bank digital currencies (CBDCs) and growing enterprise blockchain adoption, particularly partnerships involving platforms like Hedera.
As the Stellar network prepares for its Protocol 23 upgrade, traders are focusing on two critical price thresholds: a resistance level at $0.45 that XLM has struggled to surpass for several months, and a support zone between $0.30 and $0.32 that could indicate accumulation potential. Market analysts suggest that the outcome of the Protocol 23 upgrade may dictate whether Stellar can finally break through this resistance ceiling or if it will need to retreat and establish support at lower price levels.
Technical indicators reveal that XLM’s price has fluctuated within a range of $0.36 to $0.37, with an aggregate volatility of around 3%. Peak trading activity reached approximately 28.91 million during attempts to push past the $0.37 resistance. The persistent resistance at this level coupled with strong support at $0.36 indicates a dynamic trading environment, characterized by institutional participation and strategized accumulation by savvy market players.
