Technical structure hints at accumulation near major demand zone; traders anticipate a potential bounce if $0.30 holds
Stellar (XLM) is stabilizing above the $0.31 level after a sharp correction earlier this month, signaling that buyers may be attempting to reclaim control. The token, which had faced heavy resistance around $0.42, is now consolidating within a defined dem
and zone between $0.30 and $0.32, according to recent market data.
The 4-hour chart shows XLM/USDT holding steady around its short-term support band, following a failed breakout attempt above $0.35. Technical analysts observe that this region has become a key battleground between buyers and sellers.
“The market is showing signs of stabilization after weeks of volatility,” noted BITX market observer. “As long as Stellar stays above the $0.30 psychological level, the risk of deeper correction remains limited. A rebound toward $0.35–$0.36 is plausible if momentum picks up.”
The chart also highlights multiple resistance blocks, notably at $0.35 and $0.42, where previous rallies have stalled. A confirmed break above these zones could trigger a broader recovery phase, while failure to defend $0.30 may open the door for retests near $0.27, a historically significant accumulation level.
Volume readings have tapered off slightly, indicating a phase of low volatility accumulation—a technical behavior often seen before trend reversals. “This kind of compression near support is typical of re-accumulation patterns,” said BITX analyst. “If Stellar mirrors its past structures, the next expansion move could test the upper supply zone near $0.42.”
On the downside, traders emphasize that losing the green support area below $0.30 could shift sentiment bearish once again. However, current price action suggests buyers remain active around this zone, seeking confirmation for a higher low formation.
With XLM trading near $0.315, the market sits at a technical crossroads. Holding above $0.30 remains crucial for bulls to maintain structure and attract new momentum. Should the asset sustain this base, a climb toward $0.35–$0.42 becomes increasingly likely, potentially marking the start of Stellar’s next upward leg.
In the short term, traders view $0.30 as Stellar’s make-or-break level — a foundation that could define its next major move.
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.