XLM rebounded strongly after facing overnight selling pressure, with the token climbing back above $0.39 during European trading hours on Tuesday. The move followed a sharp dip that saw the asset fall from $0.39 at 2 a.m. UTC to $0.38 by 4 a.m., marking the session’s steepest decline. Elevated trading activity around the $0.38 level signaled strong demand, helping to establish that zone as a key support area.

The bounce gained momentum as markets in Europe opened, pushing XLM back toward $0.39. Analysts noted that the recovery suggested institutional interest, with traders likely accumulating at discounted prices. Price action during the 24-hour window from Sept. 16 at 15:00 UTC to Sept. 17 at 14:00 UTC highlighted resilience, with the asset oscillating within a narrow $0.38–$0.39 band — a 2% swing despite heightened volatility in broader crypto markets.

Intraday trading in the final hour of the observed period reflected this tug-of-war between bulls and bears. After briefly testing $0.39 at 13:25 UTC, XLM slipped back to its session low just 20 minutes later before regaining momentum. The recovery from the dip underscored buying conviction, with the token closing near $0.39 and preserving its bullish structure heading into the U.S. session.

Technical Indicators Signal Constructive Momentum Architecture

• Trading parameters of $0.38 to $0.39 constitute 2 per cent volatility differential during 24-hour assessment period.
• Acute nocturnal decline from $0.39 to $0.38 marked the period’s most pronounced bearish sentiment.
• Elevated volume participation around $0.38 threshold established critical demand confluence.
• Recovery momentum accelerated throughout European trading with ascension beyond $0.39.
• Institutional accumulation confirmed at discounted levels around psychological $0.38 support.
• Succession of ascending lows through consolidative price behaviour suggests underlying bullish conviction.
• Mid-session volatility examined critical support infrastructure during one-hour trading window.

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