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- XLM has strong support at $0.38, forming a potential launchpad for a rally.
- Technical indicators (MACD, Supertrend, CMF) signal bullish momentum.
- Positive social sentiment may fuel buying pressure toward $0.42 and beyond.
After a sharp rally in July, Stellar (XLM) faced a period of weakness, losing much of its recent gains. However, recent trading patterns suggest the altcoin may have found a short-term bottom, signaling the potential for renewed upside in September.
XLM Finds a Solid Support Base
Between September 13 and 16, XLM traded lower, forming a series of compressing highs and lows on the 4-hour chart. This consolidation, however, appears to be ending as the price broke above the upper resistance trendline. Technical indicators support this shift: the Supertrend’s green line flipped below XLM’s price, confirming short-term bullish bias, while the Moving Average Convergence Divergence (MACD) has produced a bullish crossover.
Importantly, XLM shows strong support at $0.38, providing bulls with a reliable floor to defend. Should buyers maintain control, the next key resistance level at $0.42 could be within reach, potentially reigniting the altcoin’s recovery.
Positive Sentiment Fuels Momentum
Sentiment indicators reinforce the technical outlook. Stellar’s Weighted Sentiment has climbed to 2.82, reflecting growing optimism across social channels. Positive crowd psychology often translates into reduced selling pressure and increased accumulation, as sidelined investors may enter the market. Combined with technical support and MACD signals, this optimism strengthens the case for an upward move.
Also Read: Ondo Finance Launches USDY on Stellar, Unlocking Onchain U.S. Treasury Yields
Bullish Patterns Point to Potential Breakout
Daily charts show XLM forming a bullish flag—a continuation pattern that typically precedes a breakout. The Chaikin Money Flow (CMF) remains above zero, indicating capital inflows are outpacing outflows. If momentum persists, XLM could surpass the $0.42 resistance and potentially target $0.64 in a sustained rally. Conversely, failure to breach $0.42 might trigger a pullback toward $0.29, testing lower support.
Stellar’s recent technical signals, combined with growing positive sentiment, suggest the altcoin is poised for a possible recovery. Traders should monitor key levels around $0.38 support and $0.42 resistance, as a decisive breakout could fuel the next leg higher for XLM.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
