Stellar (XLM) is currently at a pivotal price point where holding the $0.27 support level is crucial to avoid a potential 14% drop to around $0.23. Recent technical analyses highlight mixed signals: while short-term bearish momentum pressures the asset downward, long-term charts show promising signs of a bullish breakout.
Analyst Ali Martinez emphasizes that a failure to maintain $0.27 could lead to sharp corrections, whereas sustaining this support could enable XLM to rebound toward $0.30 in the near term. A falling wedge breakout pattern on weekly charts suggests the end of a downtrend, with potential upside targets at $0.60, $0.64, and $0.86, representing significant gains if achieved.
Technical indicators add nuanced perspectives. The MACD on daily charts signals a possible bullish crossover, indicating buyers may regain control soon. Narrowing Bollinger Bands on the 4-hour chart point to an upcoming period of high volatility, potentially catalyzing price movement. Conversely, declining open interest and a slipped funding rate into negative territory imply that bearish sentiment currently dominates market positioning. The relative strength index (RSI) and moving averages underscore this selling pressure, with bears controlling the market in the short term.
Investors keenly watch battles between bulls and bears over the coming weeks, with the price’s ability to hold above $0.27 determining its trajectory. Should Stellar maintain key support zones and overcome resistance levels, a long-term rally appears feasible. Conversely, a breach may trigger further declines, intensifying short-term corrections and dampening near-term outlook.