Stellar (XLM) Poised for Rebound as Selling Pressure Eases and Buyers Regain Momentum

Stellar (XLM) has been under pressure for the past month, falling around 14.7% as the broader crypto market weakened. However, recent price stability suggests the correction may be ending, and technical indicators now point toward a potential bullish breakout.

On the daily chart, XLM is consolidating within a symmetrical triangle, a formation that reflects market indecision between buyers and sellers. This structure, with only two touchpoints on each side, is relatively weak, implying that even a small surge in momentum could trigger a breakout in either direction. Since neither bulls nor bears have firm control, the next move could hinge on which side acts first.

After a three-month slide exceeding 19%, XLM’s ability to hold its ground signals that sellers may be losing strength. The Wyckoff Volume Chart supports this view — the yellow bars representing selling activity have been shrinking, indicating that selling pressure is fading. A similar pattern in mid-October preceded a 15% price rally, hinting that a comparable scenario may unfold again. Confirmation of this shift would come from the appearance of blue or green bars, signaling stronger buyer dominance.

For traders, the $0.30 level remains crucial support. As long as XLM holds above this zone, a move toward $0.33 — roughly a 7.8% rebound — is possible. Breaking past $0.33 could unlock further upside targets at $0.35 and $0.39. Conversely, a drop below $0.30 could invalidate the bullish setup and send prices down to $0.28.

Overall, fading selling pressure, steady support near $0.30, and historical momentum patterns suggest that Stellar (XLM) might be nearing the end of its downtrend. If broader market sentiment improves, XLM could be gearing up for a meaningful recovery phase.