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- Stellar holds key $0.39 support, rebounding with strong bullish momentum.
- A breakout above $0.50 could lead to a rally toward $0.93 and higher.
- XLM may catch up to XRP, aiming for new all-time highs by late 2025.
Stellar (XLM) is showing renewed strength after successfully defending a critical support level, setting the stage for a potential breakout. Technical indicators and price patterns suggest a bullish trajectory for the rest of 2025, raising expectations for a surge toward new record highs.
Stellar Holds Key Support and Gains Momentum
After surpassing the $0.39 level in July, XLM experienced a brief pullback, dipping below support but quickly recovering. A strong bullish engulfing candlestick signals that buyers are back in control, pushing prices higher and confirming support. This rebound marks an important shift, as Stellar now targets resistance near $0.50. Breaking above this level would unlock significant upside potential.
Technical Signals Point to a Bullish Run
Momentum indicators bolster the optimistic outlook. The Relative Strength Index (RSI) remains above 50, and the Moving Average Convergence Divergence (MACD) is in positive territory, both pointing toward upward momentum. Wave pattern analysis indicates Stellar has completed its corrective phase and is ready for a decisive upward move. A breakout from the long-standing triangle pattern, which has constrained XLM since 2021, could lead to a rapid rally toward the all-time high near $0.93—and beyond.
Stellar Set to Catch Up With XRP
While Stellar attempts to break out of its triangle, XRP has already surpassed a similar resistance, pulling ahead earlier in 2025. Despite divergent recent price action, Stellar’s breakout could trigger a catch-up rally, potentially pushing XLM past previous highs and challenging the $1.50 resistance level derived from Fibonacci retracement analysis.
With multiple technical factors aligning, Stellar is at a critical juncture. A successful breakout above $0.50 could spark a sharp upward move, setting the stage for new all-time highs and renewed investor interest. Traders and holders should watch this space closely as Stellar prepares for a pivotal breakout in the months ahead.
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.
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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.
