Stellar’s native token, XLM, is struggling to stay above the $0.39 mark, leaving the market cautious about its next big move. The token faces a decisive test between holding critical support or breaking through to the long-awaited $0.50 level.
As of this writing, XLM is trading at $0.3577, down 7.93% over the past 24 hours. The token’s market capitalization sits at $11.4 billion, while 24-hour trading volume is $319.5 million.
Source: CoinMarketCap
XLM eyes $0.50 but faces one more pullback
Ali, a crypto analyst known on social media as @ali_charts, highlights that Stellar’s price action is consolidating within a descending triangle, with resistance steadily pressing down on the token.
XLM is currently hovering near $0.39, just above key support levels around $0.36–$0.37. Analysts suggest that before any breakout attempt, the token may need to retest this support zone, allowing momentum to reset before bulls can push higher.
If the support holds, a breakout above the descending resistance could trigger a rally toward $0.50, marking nearly 30% upside. The Fibonacci levels highlight potential checkpoints at $0.42 and $0.45, where the price may pause before reaching the psychological barrier. However, failure to hold above $0.36 risks a slide toward $0.30, which would invalidate the bullish setup.
Outlook for Stellar’s ecosystem
Stellar’s performance has been volatile in recent months. Rallies in late 2024 gave way to sharp corrections early this year.
Still, the asset has held within a mid-range channel, preserving bullish sentiment despite repeated setbacks.
Many traders consider the $0.50 level a psychological barrier. Clearing it could mark a decisive shift in momentum and encourage renewed optimism.
A successful breakout would not only confirm a trend reversal but also refocus attention on Stellar’s payment-focused blockchain. The project positions itself as a settlement layer for financial institutions.
Technical analysis- Stellar shows weak momentum
Looking at the daily technical indicators, the Relative Strength Index (RSI) sits at 39.11, signaling growing bearish pressure.
The MACD indicator also reflects bearish sentiment. Both the MACD line and the signal line are trending below zero, while the histogram shows fading bullish momentum. This alignment points to a continuation of short-term selling pressure unless buyers step in soon.
XLM/USD price chart, Source: TradingView
Stellar price action shows resistance forming around $0.40, which has repeatedly capped upward moves. Stronger resistance is visible at $0.45.
On the downside, immediate support lies near $0.35, according to CoinLore’s analysis, with a deeper floor at $0.3341.
Holding above $0.35 remains crucial for bulls to prevent further declines and keep hopes for a rebound toward $0.50 alive.