XLM Hits Target Zone: Breakout Above $0.255 Coming?

Key Insights:

• XLM has entered a major support zone after losing $0.218, now trading around $0.16.
• Weekly chart shows possible reversal setup, but $0.255 breakout is needed for confirmation.
• RSI nears oversold and volume rises, but trend remains bearish until key resistance breaks.

Stellar (XLM) was trading near $0.16 after falling slightly by 0.5% in the last 24 hours. Over the past week, the price has dropped by more than 7%. The current level puts XLM below all major exponential moving averages (EMA 20/50/100/200), a sign that the overall trend remains weak.

After losing the $0.218 support, the price dropped into a lower range and is now sitting at an area some traders are watching closely. This $0.16 zone has seen a slight bounce, but the move lacks strong follow-through. If the level fails to hold, the next support lies near $0.09.

Blue Zone Reached on Weekly Chart

A weekly chart shared by More Crypto Online points to a target zone between $0.163 and $0.079. This range is based on Fibonacci levels, including the 100%, 123.6%, 138%, and 161.8% extensions. According to the analysis, this is a possible area where long-term buyers may step in.

There’s also an Elliott Wave pattern in play. The structure may be completing a wave (iv) correction, which could lead to a wave (v) move higher. This idea remains only a possibility. As noted in the post, “a break above $0.255 would be the first indication that buyers are starting to take control.” Until that happens, there is no confirmation of a shift in trend.

Momentum and Buyer Interest

The Relative Strength Index (RSI) is near oversold territory, which often suggests selling may be slowing down. A bounce could occur from this level, but so far, the reaction has been weak. The recent increase in trading volume may show some interest returning, though it is still unclear if that interest is strong enough to reverse the direction.

Zain Haider also commented on the current market setup, saying, “trend reversal is NOT confirmed.” The price remains in a downtrend, and buyers have not taken control yet. A short-term recovery is possible, but caution remains high.

Resistance Still in Place

The first resistance is at $0.22. If buyers push above that, the next test would be $0.255. That level is being watched by traders as a signal that sentiment may be changing. A clean move past $0.255, followed by stronger upward structure, could mark the start of a new uptrend.

If price breaks below $0.105 or $0.079, the idea of a reversal would be invalid in the short term. Until then, XLM is trading in a zone where both risk and opportunity are present, depending on how the market reacts in the coming days.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.