Saad Ullah
After weeks of sliding prices, Stellar's XLM is finally showing some life. The recent bounce near $0.30 has all the hallmarks of a potential trend reversal—the kind technical traders get excited about. Between Fibonacci support, a solid demand zone, and a tightening descending channel, XLM might be gearing up for an upward move in the weeks ahead.
XLM's Structure Suggests a Reversal Phase
According to analyst Catalyst Traders, Stellar has landed in an ideal "long entry zone" between $0.30 and $0.31, backed by the 0.618 Fibonacci retracement level. This zone has held up as strong support, with buyers consistently defending the price.
The chart shows XLM trapped in a downward channel since late July, forming lower highs and lower lows. But the latest bounce suggests the channel's lower boundary is holding firm once again.
If XLM keeps its footing here, the next logical target sits around $0.35–$0.36 at mid-channel resistance, with a potential push toward $0.40–$0.42 at the upper trendline.
The highlighted "LONG HERE" zone lines up with both the 0.5 and 0.618 Fibonacci levels—a technical sweet spot that often attracts bigger players. Assets tend to bounce hard from this area as traders pile in ahead of a reversal.
The price action hints at a bullish corrective wave forming, with a small pullback likely before any continuation higher. Once price breaks above the descending channel and confirms with a retest, traders may view it as the start of a medium-term rally.
Market Context: Altcoins Are Waking Up
This potential breakout comes as the broader altcoin market shows signs of life. With Bitcoin holding above key levels, capital is starting to rotate into mid-cap coins like Stellar.
On the fundamental side, Stellar's blockchain continues to draw interest from institutions and cross-border payment projects—historically a bullish driver during rally phases. The mix of technical recovery and renewed market interest could fuel XLM's momentum as volatility picks back up.
Key Levels to Watch
- Long Zone: $0.30–$0.31
- First Target: $0.36–$0.38
- Secondary Target: $0.45–$0.50 (channel breakout zone)
- Invalidation Level: Below $0.28 (breakdown of 0.618 Fib support)
As long as Stellar holds support at $0.30 and breaks cleanly out of the descending channel, the path toward $0.45+ remains technically open.
Saad Ullah
