XLM Technical Analysis Highlights Crucial Levels
Stellar (XLM) is trading near a critical price zone after weeks of downward pressure. At the time of writing, XLM is priced around $0.361, hovering just above a major support range between $0.34 and $0.36. This zone, highlighted on the daily chart, has repeatedly acted as a defensive area where buying interest has historically emerged.
The current structure shows a descending channel pattern, with price making lower highs and lower lows since early August. Market technicians often view such formations as signals of continued bearish momentum until a decisive breakout occurs. “The support near $0.35 is essential for stabilizing price action. A sustained close below this level could trigger a deeper correction toward $0.30,” explained BITX crypto market analyst.
Volume data reveal that trading activity has remained steady, suggesting that buyers are defending the green support band despite broader market weakness. If Stellar can maintain this floor, attention will shift to potential upside targets. The first resistance level sits near $0.39, followed by heavier supply zones around $0.43 and $0.47, where sellers have previously rejected rallies.
BITX technical strategist noted, “Breaking out of the downward channel and closing above $0.39 would signal a change in market sentiment, potentially attracting fresh demand and targeting the mid-$0.40s in the short term.” Traders are closely watching for a daily candle close outside the descending trendline as confirmation of a reversal.
For now, the key factor is Stellar’s ability to hold the $0.34–$0.36 support area. Maintaining this level could pave the way for a rebound toward upper resistance zones, while a breakdown would likely invite additional selling pressure. “Patience is crucial,” another analyst added, “as consolidation within this range may precede a stronger move in either direction.”
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.