Stellar posts a sharp rebound from $0.33 support as traders eye sustained recovery momentum
After a volatile weekend that saw Stellar (XLM) tumble toward the $0.33 support zone, the altcoin has posted a notable rebound, rising over 6% in the past 24 hours to reclaim a short-term resistance at $0.35. The recovery comes amid renewed institutional interest following a broader crypto market crash that triggered over $20 billion in liquidations last Friday.
The XLM/USDT pair has recovered from its steep intraday drop, showing early signs of stabilization within a critical green demand zone between $0.32 and $0.36. Market analysts note that this recovery phase could mark the start of a broader accumulation period if buying pressure continues into mid-October.
“The bounce from the $0.33 base is technically meaningful,” said BITX technical strategist. “It confirms strong buyer defense at historical demand levels, while the swift recovery above $0.34 suggests the return of smart money following the weekend capitulation.”
Technical Structure Signals Recovery Potential
The daily chart shows that Stellar has broken out from a prolonged descending channel pattern, with price action now consolidating near the mid-range of its recovery structure. A close above $0.36 could pave the way for an extended move toward the $0.40–$0.42 resistance area, while failure to hold above $0.33 may expose XLM to a retest of the $0.28–$0.30 support band.
Trading volumes remain elevated compared to early October levels, hinting at growing institutional participation. The rebound also mirrors a wider market trend, with Bitcoin stabilizing above $63,000 after last week’s flash crash and gold reaching an all-time high, reinforcing the shift in macro sentiment toward safe-haven assets and select altcoins.
XLM’s strong defense of key support and improving technical structure suggest the asset may be entering a recovery phase, particularly if market liquidity continues to normalize. For now, traders are watching whether Stellar can sustain momentum above $0.35 — a crucial level for confirming short-term bullish control.
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.