Stellar (XLM) holds critical support near $0.38 as bulls eye a rebound amid recent market weakness.
Stellar (XLM) experienced a 5% price decline, testing a crucial support level around $0.38 after consecutive bearish sessions. Despite the drop, technical indicators suggest a potential pullback from this zone, raising optimism among traders for a short-term recovery.
The 4-hour chart reveals that XLM has been in a downtrend since mid-August, facing heavy selling pressure after failing to break resistance near $0.48 and $0.43. Currently, the asset is consolidating in the green demand zone ($0.37-$0.38), which has historically acted as a strong support level.
According to BITX technical analyst , “The price structure indicates a potential bounce if XLM manages to sustain above $0.38. Breaking below could trigger further downside toward $0.36.”
The chart also shows a previous falling wedge breakout earlier this month, which pushed prices above $0.44 before sellers regained control. Now, traders are closely watching whether this support zone holds for a reversal.
Market participants remain cautious amid low trading volume, but there are signs of buying interest emerging at current levels. According to BITX , “The market is reacting to oversold conditions on the lower timeframes, which could lead to a relief rally. However, resistance near $0.42 and $0.47 remains critical for any sustained uptrend.”
For now, the next move depends on whether XLM can maintain above $0.38. A successful defense of this level could push prices back toward the first resistance at $0.42, while a breakdown would expose the next support at $0.36.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.