Saad Ullah
Stellar (XLM) is displaying a textbook technical pattern after its impressive summer rally. The token has pulled back from resistance at $0.45 and is currently trading at $0.3613, steadily approaching a critical demand zone between $0.32 and $0.30. This area could prove decisive for XLM's next directional move.
XLM Price Outlook Backed by Technical Analysis
The recent pullback from $0.45 resistance wasn't unexpected, as crypto trader noted the rejection was clean and provided an opportunity for healthy consolidation.
This type of retracement often sets up stronger moves higher when support levels hold.
The daily chart shows XLM respecting key technical levels:
- Current price: $0.3613 (+1.09%)
- Immediate target: $0.32–$0.30 demand zone
- EMA (9): Acting as dynamic resistance at $0.3709
- Next resistance: $0.45, with extension targets at $0.55
Why the $0.32–$0.30 Zone Matters
This support area carries significant weight for several reasons. It previously acted as resistance during XLM's climb, creating a natural flip zone where sellers could become buyers. Market participants who missed the initial rally are likely waiting for this level to enter positions.
A successful defense of this zone could trigger strong buying pressure, as it would confirm the bullish structure remains intact. The risk-reward setup becomes particularly attractive at these levels for traders looking to capitalize on the next leg up.
Stellar approaches a make-or-break moment at its key support zone. If buyers step in to defend $0.30–$0.32, XLM could see a sharp bounce back toward $0.45 resistance, with potential for further gains to $0.55.
The coming days will be crucial as this demand zone could determine whether Stellar continues its correction or sparks the next bullish wave. All eyes remain on how price action unfolds at these critical levels.
Saad Ullah
