Usman Salis
Stellar (XLM) just smashed through a major descending trendline, and traders are buzzing about what could be a momentum shift. The breakout is pointing toward a potential run to $0.45 and possibly higher.
What's Happening: XLM Shows Signs of Life on the 4H Chart
After what feels like forever in a downtrend, Stellar (XLM) might finally be turning the corner. The token just broke above a key descending trendline on the 4-hour timeframe, and it's got traders wondering if the worst is behind us. The breakout happened around $0.41, and we're already seeing some follow-through with XLM pushing past $0.419.
This comes at a time when the broader crypto market is starting to find its footing again, and it looks like XLM is finally getting with the program.
The Technical Picture: Clear Break Above Resistance
A popular crypto analyst @NoContextWeb3 called out the move, highlighting just how significant this breakout could be:
"XLM $XLM Breaks Key Trendline – Bullish Momentum Building! XLM has just broken above a major descending trendline on the 4-hour chart, hinting at a possible shift in momentum. This breakout suggests that the bearish pressure may be easing, and buyers could be stepping in. A sustained move above this level could open the door for further upside."
Right now, XLM is sitting at $0.4192 as of August 4th. The chart's showing a nice parabolic move pointing toward the $0.45–$0.47 zone. What's encouraging is that we're seeing volume pick up on this move higher – that's exactly what you want to see when a breakout is legitimate.
Where We're Headed: Key Levels to Watch
Here's what traders are keeping their eyes on:
- Support to hold: $0.41 (the breakout level)
- First stop: $0.45
- Next hurdle: $0.47–$0.48 zone
- Game over: If we fall back below $0.40 with heavy selling
The setup looks pretty clean for a momentum-driven rally, especially if XLM can stay above that trendline over the next few trading sessions. With altcoins showing some life lately, XLM might just be catching up to the party.
Usman Salis
