Stellar Shows Strength After Testing Key Support
Stellar (XLM) price is holding firm near a crucial support zone, signaling a potential bullish continuation if buyers maintain momentum. The XLM/USDT pair, currently trading around $0.393, bounced from the green demand area between $0.385 and $0.395, which has historically acted as a strong reversal zone.
The 4-hour chart reveals that XLM recently broke out of a falling wedge pattern, a classic bullish reversal structure, before consolidating near support. According to BITX market analysts, this price behavior indicates that sellers are losing control while buyers prepare for an upward move.
“The $0.385-$0.395 zone is a critical support. If XLM continues to hold above this level, we could see a retest of the $0.47 resistance in the coming sessions,” BITX technical analyst noted.
The next significant resistance lies in the $0.465-$0.48 region, highlighted by the previous supply zone marked in red. A clean breakout above this range could open the door for a broader bullish rally targeting $0.52 and beyond.
Key Levels to Watch
- Support Zone: $0.385-$0.395
- Immediate Resistance: $0.42
- Major Resistance: $0.465-$0.48
Volume trends also show an increase in buying pressure near the green zone, which often precedes an upside breakout. However, traders should remain cautious as a breakdown below $0.385 could invalidate the bullish outlook, potentially pushing prices toward $0.36.
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.