|
Getting your Trinity Audio player ready...
|
- XLM tests critical $0.37 support after 1,600 days under resistance.
- Wave analysis and descending wedge suggest a potential bullish breakout.
- Key targets for a rally range from $0.628 to $0.665 if support holds.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Stellar (XLM) has been trapped under a descending resistance trend line for over 1,600 days, with three failed breakout attempts in the last year. Now, the cryptocurrency is testing a key horizontal support level that could determine whether it finally reverses its long-term downtrend or continues its struggle.
XLM Price at a Critical Crossroad
Currently trading around the $0.37 horizontal support, Stellar is attempting to reclaim this level with a significant bounce. Historically, this zone has acted as both resistance and support, making it a decisive area for the token’s future trajectory. If XLM successfully holds above $0.37, the next target could be the diagonal resistance at $0.48, which has weakened over multiple breakout attempts.
Momentum indicators, however, remain indecisive. The Relative Strength Index (RSI) hovers around 50, while the MACD is barely above zero. This suggests that neither bulls nor bears are in full control, and a clear trend may only emerge once XLM closes above its support.
Is the Downtrend Ending?
Short-term wave analysis indicates that the recent dip may have already bottomed. Stellar appears to be completing wave four of a five-wave upward sequence, contained within a descending wedge pattern. Since descending wedges are typically bullish, a breakout from this formation could spark a major upward move.
Also Read: Stellar (XLM) Price Set to Surge? Key Indicators Point to $0.42 Breakout
The projected target for the fifth wave ranges from $0.628 to $0.665, based on Fibonacci retracement levels and wave-length calculations. If XLM maintains its support and breaks out of the wedge, the cryptocurrency could see a rally toward these levels, potentially marking a new cycle high.
Preparing for a Breakout
Traders and investors are closely watching whether Stellar holds above the $0.37 mark. A sustained rebound could trigger a powerful upward movement, positioning XLM for its strongest rally of the current cycle. Market participants may anticipate a parabolic surge if the breakout aligns with bullish momentum indicators.
Stellar’s future hinges on its ability to defend the $0.37 support. A successful reclaim could set the stage for a major rally, while failure may extend the prolonged downtrend. Investors should monitor key levels closely for signs of a breakout.
Stay ahead with real-time updates and insights—Join our Telegram channel!
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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
