XLM Pulls Back From Resistance as Bulls Defend Key Support
Stellar (XLM) is showing signs of cooling off after a sharp upward move, with the price retreating from recent highs to trade near $0.3915. Despite the retracement, the asset remains up more than 60% from its September lows, highlighting strong volatility around major support and resistance zones.
The 4-hour chart reveals that XLM rallied aggressively from the $0.34–$0.36 demand zone, breaking out of a descending channel pattern in early September. This bullish move lifted the token above $0.40, where it faced immediate resistance.
Currently, sellers are active near the $0.42–$0.46 supply zone, a region that has historically capped rallies. If Stellar fails to reclaim this level, the price could revisit the $0.36–$0.37 support area, which has proven to be a strong base for buyers.
“The market is consolidating after an extended rally, which is natural in such setups,” According to BITX technical strategists. “As long as XLM holds above $0.36, the bullish structure remains intact, with $0.45 as the next upside target.”
Market Context
Stellar’s recent surge was fueled by renewed investor interest and broader strength across select altcoins. Trading volume has remained steady, reflecting healthy participation from both retail and institutional traders.
Analysts emphasize that retracements like this are common after strong breakouts. “Price corrections are essential to reset momentum indicators and allow for sustainable growth,” According to BITX experts. “If buying pressure resumes, Stellar could attempt another move toward $0.45 and possibly $0.50.”
In the short term, XLM faces a balancing act between buyers defending $0.36 support and sellers positioned around $0.42–$0.46 resistance. A decisive breakout above resistance would confirm bullish continuation, while a failure could see Stellar trade sideways or retest lower levels.
For now, the retracement appears to be a healthy pullback rather than a trend reversal, keeping the focus on whether bulls can regain control in the coming sessions.
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.