XLM struggles near $0.36 after repeated rejections from resistance zones
Stellar (XLM) has seen heightened volatility in recent sessions, with the token testing a major support zone around $0.35–$0.36 after an extended downtrend. The move comes following repeated failures to hold above resistance, raising questions about whether buyers can maintain this critical level.
The 4-hour chart highlights a prolonged decline from highs near $0.55, with XLM forming a descending wedge before briefly recovering in early August. However, the token struggled to clear heavy resistance in the $0.42–$0.48 range, marked by supply zones where sellers have consistently overwhelmed buyers.
Currently, XLM trades at $0.368, holding just above a strong green support band. This level has been tested multiple times over the past month, suggesting that a break below could accelerate downside momentum toward $0.32. On the upside, reclaiming $0.40 remains crucial for any bullish recovery.
Market observers note that the recent price structure reflects waning bullish pressure. BITX analyst explained, “The repeated rejections from $0.42 show that Stellar needs stronger volume to stage a meaningful breakout. The $0.35 zone is now the lifeline for short-term traders.”
The outlook for Stellar remains uncertain as the asset balances on the edge of its critical $0.35 support. Holding above this range could allow a rebound attempt toward $0.40–$0.42, but any decisive breakdown risks a slide to deeper levels.
In the short term, the market’s reaction around this key zone will likely dictate momentum. Traders are advised to watch for confirmation signals, as the next move could determine whether Stellar builds a base for recovery or enters a new phase of decline.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.