Stellar (XLM) Price Keeps Hitting the Same Wall, but This Fourth Retest Could Be the One That Breaks

The XLM price has been stuck in a well defined channel since February. The script has remained the same for months. A rejection at $0.179, then a retreat back to the $0.147 support. Rinse and repeat. 

Now the XLM price is approaching $0.179 once again. This marks the fourth consecutive retest of that resistance level. In technical analysis, the more a level is tested, the weaker it becomes. 

Ali Martinez is watching for a daily close above $0.179. A clean breakout here would signal that the supply at this ceiling has finally been exhausted, likely triggering a 20% rally toward $0.22.

What the XLM Daily Chart is Showing

We had a look at the daily chart from Ali. The XLM price is trading near $0.179, right at the resistance line. The channel is clearly drawn, with support at $0.147 and resistance at $0.179. 

The XLM price has bounced between these two levels since February. Each time it hit $0.179, sellers showed up. Each time it dropped to $0.147, buyers stepped in. That is a clean range, but ranges do not last forever.

The fourth retest is different. The level has been hit three times before. Each test uses up some of the supply sitting at that level. Eventually, the sellers run out. Ali notes that historically, $0.179 has been a sell zone. But this time, he is watching for a daily close above that level. That would be the first sign that the supply is exhausted.

Why This Retest Matters

Three rejections at the same level tell you that sellers are in control. But a fourth test with no breakout yet? That tells you something is changing. The XLM price is not getting rejected as hard as before. The bounces off $0.179 are getting smaller, and the time spent near resistance is getting longer. That is what a weakening level looks like.

A daily close above $0.179 would flip the entire structure. The level that has been resistance for months would become support. Ali Charts targets a 20% rally to $0.22 from there. That is not a random number. It is the next logical resistance zone above the current channel.

Where the XLM Price Goes From Here

The XLM price is at $0.179. The channel support is at $0.147. The resistance is right here. A daily close above $0.179 triggers a rally to $0.22. A rejection sends the price back to $0.147. That is a 20% move in either direction. 

The XLM price has done this three times before. The fourth time could be the same, or it could be the breakout. Ali is watching the daily close. That is the only signal that matters. The XLM price is the only thing left to decide which way the channel breaks.

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The post Stellar (XLM) Price Keeps Hitting the Same Wall, but This Fourth Retest Could Be the One That Breaks appeared first on CaptainAltcoin.