Stellar (XLM) Eyes Recovery as Bullish Patterns Emerge Across Lower Timeframes

Stellar (XLM) Charts a Potential Recovery as Technical Indicators Turn Bullish

Stellar (XLM), the native token of the Stellar blockchain network, is showing early signs of a possible market reversal, following weeks of subdued performance. Emerging bullish chart patterns across shorter timeframes are fuelling optimism among traders and analysts, with technical indicators lending further support to the recovery narrative.

Short-Term Charts Reveal Bullish Reversal Patterns

Analysts are pointing to a series of bullish signals on intraday charts that suggest a shift in market sentiment. On the one-hour chart, a falling wedge breakout—a technical pattern often associated with trend reversals—has taken shape. This formation typically signals a transition from bearish consolidation to bullish continuation.

Meanwhile, the 30-minute chart has confirmed the presence of a double bottom pattern between the $0.2089 and $0.22 price levels, with a clear breakout above the neckline. This structure is often seen as a strong reversal indicator in technical analysis.

Additionally, on the 15-minute chart, a bullish engulfing candle has emerged, indicating renewed buying pressure in the short term. These overlapping patterns are strengthening the case for an upward move, particularly if supported by sustained momentum.

Technical Indicators Align with Upward Bias

Beyond chart patterns, technical indicators are also aligning with a growing bullish outlook. The Bollinger Bands—a tool that measures price volatility—are expanding as the price climbs from the lower band toward the middle line, suggesting increasing market activity.

A bullish crossover in the MACD (Moving Average Convergence Divergence) has been observed on both the one-hour and four-hour charts. This crossover, accompanied by a rising histogram, is typically interpreted as a signal of strengthening upward momentum.

Furthermore, the Relative Strength Index (RSI), which had previously dipped into oversold territory, is now recovering and approaching neutral levels. This suggests that while buyers are gradually regaining control, the asset is not yet overbought—offering room for continued upward movement without immediate correction risk.

Key Support and Resistance Levels in Focus

Market participants are closely watching several critical price levels. On the downside, support appears firmly established at $0.2200 and $0.2089. These levels have repeatedly acted as buffers during recent sell-offs and are likely to be key zones for buyer re-entry in the event of a short-term pullback.

To the upside, resistance is visible at $0.2370, with a more significant barrier at $0.2650, which coincides with the upper Bollinger Band on higher timeframes. A decisive move above the $0.2370 threshold could pave the way for a sustained rally, with $0.25 and $0.2650 emerging as potential upside targets in the near term.

Cautious Optimism Amid Volume Concerns

Despite the confluence of bullish signals, analysts are advising caution. Trading volume remains relatively low, which raises questions about the strength and sustainability of the current upward move. Additionally, while the MACD crossover is encouraging, it is still in its early stages, and confirmation through sustained price action and increased market participation is needed.

A failure to break through the $0.2370 resistance zone could prompt a short-term retracement, with the price potentially revisiting the support levels at $0.22 or even $0.2089. As such, traders are being urged to wait for confirmation before fully adopting a bullish stance.

Outlook: A Critical Juncture for Stellar

Stellar’s recent technical behaviour places it at a pivotal moment. While there are compelling signs of a trend reversal, the next few trading sessions will be crucial in determining whether the altcoin can maintain its momentum or face renewed downward pressure.

Beyond technicals, broader market sentiment and macroeconomic developments in the cryptocurrency sector will likely influence XLM's trajectory. Investors and market observers alike will be watching closely to see whether Stellar can capitalise on these initial signs of recovery and reassert its position in a competitive and rapidly evolving digital asset landscape.

Source: CoinMarketCap

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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