- XLM breaks its downtrend, flips $0.27 into support, and holds above $0.30 targeting $0.35.
- Cup-and-handle pattern forms with price above key SMAs.
- Open interest rises to $253.45M and volume to $927.62M, backing the rally.
- Momentum could push XLM toward early 2025 highs.
Stellar’s XLM token has finally emerged from a long-established downtrend, signaling a new surge of momentum after months of sluggish activity. The price broke above the $0.27 level. This resistance level, which was holding, has now become a strong support, bolstering the optimism for the upward breakout.
XLM Holds Above $0.30, Targets $0.35
XLM exhibiting a traditional cup-and-handle setup on the 4-hour chart, a highly bullish indication that indicates a potential trend reversal. Technicals are confirming the breakout, with the price action crossing above the 20, 50, 100, and 200 SMAs. These moving averages have now become supports, lending further strength to the bullish setup.
At the moment, the price is holding above $0.30 and appears to build strength for a rise towards the next resistance at $0.35. For the short-term, significant resistance points of interest are $0.35, then $0.45, $0.50, and $0.55.
On the negative side, near-term support is at $0.27, with alternate levels at $0.254, $0.251, and $0.246. As long as the price remains above the trendline and significant SMAs, the bullish argument holds good.
Also Read: XLM Price Prediction: Could Stellar Reach $1 Sooner Than Expected?
Derivatives Market Backs the Rally
Derivatives market activity reinforces the breakout further. As Coinglass data shows, open interest has risen to $253.45 million, while the volume of trades reached a peak of $927.62 million. The uptick in both these parameters shows rising activity in the market and higher interest among traders, which reinforces the breakout further.
Can XLM Reach 2025 Highs?
Sentiment lifted with the breakout, and the subsequent push could have XLM retest higher prices not seen since the first half of 2025. The combination of the technical breakout, rising volume, and open interest is a signal for a decisive turning point for the price action of Stellar.
Also Read: XLM Eyes $0.247 Breakout as Support Holds at $0.225; Big Move Coming?
Disclaimer: This article is based on real-time market data and general technical observations. It does not constitute financial advice. Always conduct your own research before making investment decisions.
