Stellar (XLM) has staged an impressive comeback, surging over 5% from its recent lows. This sharp rebound follows a bullish breakout from a descending wedge pattern—a well-known reversal indicator—placing XLM in a favorable position for further gains.
XLM Price Analysis: A Bullish Breakout in Motion
XLM’s breakout, evident on the 4-hour chart, marks the end of its prolonged correction phase that bottomed out at $0.22 on March 11. The asset has since rallied significantly, reaching a local high of $0.30—a remarkable 40% surge that signals growing bullish momentum.
The technical structure aligns with Elliott Wave Theory, suggesting the correction phase has concluded. Following the breakout, XLM established a higher low at $0.26, reinforcing its bullish outlook. The Relative Strength Index (RSI) on the daily chart hovers around the midline, showing upward curvature—an early sign of sustained bullish strength.
Currently, XLM is consolidating near $0.30 after successfully retesting the previous resistance level at $0.26, which has now flipped into support. The asset’s next key challenge lies at $0.365, a major resistance level aligned with the 1.618 Fibonacci extension.
XLM Price Prediction: What’s Next?
The 4-hour chart reveals a developing Elliott Wave structure, indicating XLM is in the third wave of a potential five-wave bullish cycle. If this scenario plays out, XLM’s immediate upside target sits at $0.365. This level corresponds with prior structural highs, reinforcing its credibility as a pivotal resistance zone.
However, failure to sustain momentum above $0.365 could lead to a temporary pullback, potentially forming a corrective wave 4 before a final leg higher toward $0.40. A decisive move above $0.40 would further validate the bullish thesis.
Key Levels to Watch
- Immediate Resistance: $0.365 (1.618 Fibonacci extension, structural high)
- Major Resistance: $0.40 (potential Wave 5 target)
- Immediate Support: $0.30 (recent breakout level)
- Key Support: $0.26 (higher low, retested resistance)
- Critical Support: $0.22 (March 11 bottom, invalidates bullish scenario)
Also Read: Stellar (XLM) Poised for a Bullish Breakout in April: Key Levels to Watch
A breakdown below $0.26 would shift sentiment back to neutral or bearish, increasing the likelihood of a return to corrective territory. For now, all eyes remain on XLM’s interaction with $0.365—its ability to hold above this key resistance could determine the next leg of its rally.
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.
