Usman Salis
After weeks of sliding within a well-defined falling channel, Stellar (XLM) might be setting up for a bullish reversal. The cryptocurrency recently bounced off a key Fibonacci 0.618 retracement level, establishing what could be a solid base around $0.30–$0.31—an area that lines up with a strong demand zone shown on the chart. If this momentum holds, traders could see XLM climbing toward $0.42–$0.60 in the coming weeks, potentially kicking off a fresh uptrend.
Technical Analysis: XLM Bounces from Key Support Zone
The daily XLM/USDT chart on Binance shows Stellar trading inside a long-term falling parallel channel—a pattern that often signals a trend reversal when paired with rising volume and Fibonacci confirmation. Recent price action reveals a clean technical setup where XLM has rebounded from both structural and Fibonacci support levels.
Since July, XLM has been carving out lower highs and lower lows within this descending channel. The latest bounce happened right at the 0.618 Fibonacci retracement near $0.30–$0.31—the "LONG HERE" zone marked on the chart. From here, the analysis suggests a possible short-term pullback toward mid-channel resistance before a sharper rally that could push past $0.50. A confirmed breakout and retest of the upper trendline would signal a bigger shift in market direction.
If Stellar holds above this demand zone, it could trigger a strong breakout wave backed by Fibonacci-based momentum targets.
Upside Targets and Market Outlook
Trader @SandySingh92887, who shared this analysis, identifies three main price targets for XLM based on Fibonacci extensions and historical resistance zones:
- First Target: $0.42
- Second Target: $0.51
- Third Target: $0.60+
These targets match up with previous resistance points visible on the chart. The 0.5 and 0.382 retracement zones around $0.35–$0.40 could act as short-term pivot areas before XLM makes a run at higher levels. If the breakout materializes, we're looking at potential gains of 40–70% from current prices—making Stellar one of the more technically compelling large-cap altcoins heading into November.
Beyond the charts, Stellar's recent resilience is backed by real progress in its cross-border payments ecosystem. The Stellar Development Foundation has been building partnerships with fintech firms and banks to strengthen on-chain settlements and expand XLM's use cases. This growing institutional interest, combined with technical support holding firm, suggests Stellar may be entering a broader accumulation phase—the kind that historically comes before major rallies.
- Long Entry Zone: $0.30–$0.31 (demand + 0.618 Fib)
- Immediate Resistance: $0.35–$0.37 (channel midline)
- Major Resistance: $0.42 / $0.51 / $0.60
- Invalidation Level: Below $0.29 (would negate the bullish setup)
Traders are keeping a close eye on whether XLM can defend its "long zone" and push toward the channel breakout region. A close above $0.35 with solid volume would likely confirm the start of the next bullish leg.
Usman Salis
