XLM Coin Price Breaks Downtrend: Can Bulls Push Toward $0.45?

Stellar (XLM) has emerged from a prolonged bearish phase, displaying encouraging technical signs that suggest a potential trend reversal. After months of downward pressure, the cryptocurrency has managed to reclaim crucial support levels and break free from its descending pattern, capturing the attention of both retail and institutional traders.

XLM Price Attempts a Bullish Reversal

Stellar is demonstrating solid recovery momentum following an extended period of declining prices. The token recently surpassed a significant diagonal resistance line and escaped from its local descending channel, generating fresh optimism in the trading community.

Analyst @HolderStat noted that this breakout represents more than just a temporary bounce, suggesting it could signal a genuine shift in market sentiment.

With XLM now maintaining levels above $0.35 support, traders are carefully monitoring whether this upward momentum can sustain itself.

Technical Analysis Points to Potential Upside

The recent price action indicates that buyers are becoming more aggressive at higher price points, which strengthens the bullish case for a potential move toward the resistance zone around $0.45. This level represents a critical test for XLM's recovery narrative.

However, traders remain cautious about the possibility of a false breakout. Should XLM retreat below the recently reclaimed trendline and close beneath the swing low near $0.33, it could signal that sellers are regaining control and force the price back into its previous downward channel.

Key Price Levels and Market Outlook

If Stellar maintains its position above the breakout zone, the next significant target lies between $0.42 and $0.45. A convincing break above this range could potentially open the door to the psychological $0.50 level.

Conversely, failure to sustain above $0.35 would undermine the bullish thesis and raise concerns about a potential retest of the $0.30 support level. Current trading activity shows increasing volume, while momentum indicators suggest buyers have taken control.

What's Next for XLM?

The upcoming trading sessions will be pivotal in determining whether this breakout marks the beginning of a sustained recovery for Stellar. Market participants will be closely watching how XLM responds to key resistance levels and whether buying interest can maintain the current upward trajectory.

With technical indicators aligning favorably and renewed investor interest, Stellar appears positioned for potential further gains, though traders should remain vigilant about possible volatility in the short term.