XLM Price Recovery Sparks Optimism After Sharp Selloff
Stellar (XLM/USDT) has staged a notable rebound after falling nearly 30% earlier this week, bouncing from the $0.27 support area to trade around $0.32 at press time. The swift recovery highlights renewed buying interest near the lower accumulation zone as broader market sentiment steadies following a volatile stretch.
The daily chart illustrates how XLM’s sharp selloff tested the lower green support band between $0.27 and $0.30, a region that has repeatedly acted as a defensive base in prior downturns. Following the dip, the token rebounded strongly, reclaiming the $0.32 handle while posting intraday gains of more than 8%.
“This kind of V-shaped recovery after a steep correction often signals short-term capitulation,” said BITX market analyst. “If Stellar can maintain closes above $0.33, we may see momentum shift back toward the $0.38–$0.40 zone in the days ahead.”
Trading volume spiked to over 17 million XLM, indicating strong participation during the rebound. The move suggests that long-term holders remain confident in Stellar’s structural support levels despite the recent selloff.
The next hurdle lies near the $0.38–$0.42 resistance range, which previously marked rejection levels in late September. Sustained strength above this zone could open the path to a retest of the major supply region near $0.50, as shown by the red band on the chart.
However, failure to hold above $0.30 may trigger another round of selling, with downside risk extending toward $0.25, where the broader yellow demand zone begins.
While Stellar’s short-term technicals appear constructive, broader market conditions remain fragile. Analysts caution that macro-driven volatility and shifting risk appetite could still influence near-term price action.
Still, the current rebound underscores the strength of buyer conviction at critical levels — a promising sign for traders watching Stellar’s recovery trajectory in October.
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.