- Stellar (XLM) builds bullish momentum, bouncing back with strong volume and institutional interest despite a short-term correction.
- Trading volume surges to $2.5B, with XLM gaining 109% in recent weeks before a healthy pullback.
- Chaikin Money Flow and Accumulation/Distribution indicators signal smart money buying the dip, highlighting $0.364 as a key support.
Stellar (XLM) is drawing new interest from traders and analysts as it sets the stage for a potential breakout amid renewed optimism over crypto ETFs and an overall market trend higher.
Following several weeks of macroeconomic jitters and unprecedented volatility, Stellar is starting to exhibit robust signs of recovery. The altcoin is building a bullish reversal pattern and indicates that a substantial price move is likely in the offing.
At the time of writing, Stellar is trading at $0.4554, which is a 1.54% gain from the last 24 hours. The altcoin has achieved a whopping $2.50 billion of 24-hour trading volume, with a market cap of $14.14 billion. This recent push comes after a recent upsurge that drove Stellar to a record high of $0.516, last seen in January 2025, which is a 109% gain from just a few weeks back.
The retreat from that peak has conjured up new speculation among analysts and traders: Is this a temporary correction or the beginning of a long-term trend reversal? As per a recent analysis from Scopuly on X (previously Twitter), XLM is now trading in the overbought zone on the 4-hour chart, with bearish divergence being a warning for the near term. Long term, the picture remains firmly bullish.
Also Read: XLM Cools Off 5.24% Below the Key Level: Will It Break $0.58 for a Potential $2 This Cycle?
Stellar (XLM) Eyes Breakout as Smart Money Buys the Dip
Even with the reversion, the underlying technical setup of XLM remains robust. Indicators of Chaikin Money Flow (CMF) and Accumulation/Distribution are flashing imbalances of consistent demand, signaling institutional buying on declines. A prominent support area has emerged near $0.364, which most analysts now see as a buy zone of opportunity.
Additionally, the weekly chart of XLM reveals steadily higher highs and increasing lows, which are classic indications of a healthy bull trend. This market action indicates that Stellar is not only bouncing back but might be laying the ground for its subsequent leg up.
A broader market atmosphere is favorable for bull momentum as well. As Bitcoin (BTC) looks to charge new highs and Ethereum (ETH) looks solid based on favorable ETF narratives, altcoins like Stellar are seeing favorable sentiment alongside surging market action. As money flows back to the market, market participants are more intensely targeting high-potential coins, of which Stellar is certainly one.
Informed traders are not entering this pullback with a sense of panic, but rather strategy. They are keeping a close eye on price action, utilizing risk management, and setting themselves up for the subsequent possible rally. The conventional wisdom of veteran market observers is that declines of this nature can create occasional buying chances, particularly when complemented with healthy fundamentals and favorable chart action.
Overall, Stellar (XLM) seems poised to benefit from today’s market environment. Although near-term volatility could endure, the underlying indicators confirm that XLM is amongst the best altcoins to buy as the cryptocurrency market heads towards what most expect could be a breakout second half of 2025.
Also Read | XLM Breaks Above Resistance, Eyes $0.80 After Bullish Rally