Stellar (XLM) has finally broken free from its multi-month downtrend, sparking a sharp rally toward $0.32 resistance. After months of lower highs and lower lows, the breakout signals a potential trend reversal—but a short-term pullback may come first.
Key Technical Takeaways
✅ Downtrend Broken: XLM closed above key resistance, confirming bullish momentum.
✅ Strong Support at $0.22: The rally started here, validating it as a reversal zone.
✅ Next Target: $0.32: A critical resistance level (Fibonacci 0.618 & value area high).
What’s Next for XLM?
🔹 Short-Term Pullback Likely: The current resistance zone may trigger a minor dip.
🔹 Point of Control (POC) as Support: If XLM holds above this level, the uptrend remains intact.
🔹 Breakthrough to $0.32?: A strong close above this level could confirm a new bullish phase.
Trading Strategy
- Watch for a retest of POC—holding here would reinforce bullish structure.
- A breakout above $0.32 with volume could open the door for further gains.
- If support fails, watch for a retest of $0.22 before reassessing.
