Stellar Lumens (XLM) is showing signs of a potential bullish reversal after a prolonged downtrend, with technical indicators hinting at a shift in momentum. Traders are closely monitoring whether XLM can sustain its recovery or if hidden resistance will hinder its breakout attempt.
XLM Price Analysis: Key Support and Resistance Levels
XLM has been in a corrective phase since hitting a high of $0.64 in November 2024. The asset found support near $0.25, aligning with the 0.618 Fibonacci retracement level, a historically strong accumulation zone. The breakout from a descending wedge suggests renewed bullish momentum.
Currently, XLM is testing two key resistance levels:
- Descending resistance from the corrective structure.
- The 0.618 Fibonacci retracement level at approximately $0.30.
A confirmed close above $0.30 could trigger further upside, while failure to breach this level may lead to another retest of lower support at $0.25.
Elliott Wave and RSI Analysis: Signs of a Trend Reversal?
Elliott Wave analysis indicates that XLM may have completed its corrective WXY structure, potentially marking the start of a new bullish cycle. The breakout aligns with the completion of wave Y, which could signal the formation of wave 1 in a new uptrend.
The Relative Strength Index (RSI) has rebounded from oversold conditions and is approaching neutral levels, suggesting increasing buyer interest. If RSI remains above 40 during a pullback, it could reinforce bullish sentiment.
Short-Term XLM Price Prediction
On the 1-hour chart, XLM recently completed wave (v) at $0.295 before entering a corrective phase. If the ongoing pullback completes around $0.253 (0.618 Fibonacci retracement), buyers may step in to fuel the next upward wave.
Key price targets:
- $0.32: 1.0 Fibonacci extension.
- $0.365: 1.618 Fibonacci extension (major resistance level).
- $0.423: 0.382 Fibonacci retracement of the macro downtrend.
Conversely, if XLM drops below $0.253, a deeper retracement toward $0.228 could follow, potentially delaying the bullish scenario. A confirmed breakout above $0.295 would strengthen the case for a rally toward $0.365 and beyond.
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XLM has shown promising signs of a trend reversal, but holding above key support levels remains critical for a sustained breakout. Traders should watch the $0.30 resistance closely, as a successful breach could signal the start of a strong bullish cycle.
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 CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
