Peter Smith
Stellar (XLM) has cooled off about 10% from its recent peak of $0.52, but the crypto is still holding key support levels. With the bullish structure intact, traders are wondering if this is just a healthy pullback or something more.
XLM Price Smashes Through $0.33 After Months of Sideways Action
Stellar finally broke free from its long consolidation phase, pushing past the stubborn $0.33 resistance that had been holding it back for months. The breakout was pretty impressive – XLM shot up to $0.52, hitting levels we haven't seen since January.
What made this move particularly convincing was the volume spike that came with it. When you see a breakout backed by serious trading activity, it usually means business. But as often happens after big rallies, profit-takers stepped in and pushed the price back down to around $0.42.
The pullback isn't necessarily bad news though. That old $0.33 resistance level? It's now acting as support, which is exactly what you want to see after a legitimate breakout.
What's Driving XLM's Momentum?
According to crypto.news, there are some solid fundamentals behind this rally. The Stellar network just hit a record $647 million in stablecoin supply, which shows real adoption and usage. Plus, futures open interest spiked, meaning more traders are getting interested in XLM.
This isn't just random speculation – there's actual network growth happening behind the scenes. When you combine improving fundamentals with technical breakouts, that's usually a recipe for sustained moves.
XLM Price Outlook: Bulls Still in Control
Here's the thing – despite the recent dip, XLM is still holding above that crucial $0.33 support zone. As long as it stays there, the breakout story remains intact. The RSI has cooled down from overbought territory to a more reasonable 57, which actually gives the price room to run higher.
The 20-day moving average is currently providing support, but XLM is testing it right now. If it breaks below, we might see a deeper correction. However, if buyers step back in, the next target is pretty clear – that January high around $0.64, which would be a nice 52% gain from current levels.
Bottom line: XLM looks like it's just taking a breather rather than rolling over completely. The structure is still bullish, but watch that $0.33 level closely.
Peter Smith
