Traders eye $0.36 support as resistance near $0.42 holds firm
Stellar’s XLM (XLM/USDT) posted a sharp rally fueled by a volume spike, briefly pushing prices higher before encountering heavy resistance that triggered an intraday reversal. At the time of writing, XLM trades around $0.387, showing resilience above key support levels despite profit-taking by short-term traders.
The 4-hour chart highlights how XLM broke out of a falling wedge pattern in late July, igniting strong upside momentum that carried prices from the $0.34 support zone toward the $0.42–$0.48 resistance range. However, as selling pressure mounted at these upper levels, the token retraced quickly, signaling hesitation among bulls.
Currently, buyers are defending the $0.36–$0.35 demand zone, while sellers remain active above $0.42. This creates a pivotal trading band that will likely determine XLM’s short-term trajectory.
BITX technical analyst explained, “The breakout from the wedge was a bullish signal, but the lack of follow-through at $0.42 shows that XLM is not yet ready for a sustained rally. The $0.36 level is now critical for maintaining bullish structure.”
According to BITX strategists, “If Stellar manages to reclaim $0.42 on strong volume, momentum traders may target $0.48. On the downside, failure to hold the $0.35–$0.36 area could expose XLM to deeper pullbacks.”
For now, XLM remains range-bound, consolidating between established support and resistance zones. The increased trading volume signals heightened market interest, but volatility suggests traders should prepare for both bullish and bearish outcomes.
In the near term, a break above $0.42 could reignite bullish momentum, potentially driving prices toward $0.48–$0.50, while a failure to hold above $0.36 risks shifting sentiment back in favor of sellers.
Until a decisive move occurs, Stellar’s XLM is likely to oscillate between $0.36 and $0.42, offering short-term trading opportunities but limited clarity on a longer-term trend.
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.