Stellar (XLM) Price Analysis: XLM Holds Strong in Buying Zone, Eyes Rally Toward $0.65

Stellar (XLM) is showing signs of stability after a downturn lately, holding within a strong buying zone. Despite a nearly 14% weekly drop, the price has seen a slight recovery

Stellar (XLM) is displaying signs of resilience after encountering some difficulties in the past period, now holding within a strong buying zone.

Despite a nearly 14% weekly drop, the price has seen a slight recovery in the past 24 hours. At press time, the price is at $0.2868. Crypto analyst CW (@CW8900) shared an analysis highlighting critical support and resistance levels that could determine XLM’s next move.

XLM Holds Support Amid Buying Wall

As shared by CW, XLM is still inside a buying wall zone, which is providing good support. The price has yet to break the previous low, suggesting a weakening in selling pressure.

The current consolidation inside this zone signals potential accumulation before an upward move. Breaking above the falling wedge pattern could initiate a rally.

“$XLM is currently in the buying wall zone. The buying wall provides support.

“Also, it did not break the previous low in this decline. The rally in $XLM will start by breaking the pattern. And there is a thick selling wall up to $0.65.”

The buying wall at the $0.25 – $0.28 range is acting as a crucial accumulation area. A breakout could lead to bullish reversal if the price manages to hold and buyers gain control. However, failure to maintain this support might trigger further downside pressure.

Moreover, CW’s analysis points out a thick selling wall extending up to $0.65. Before reaching that level, XLM must first overcome resistance at $0.35 – $0.38. A confirmed breakout beyond $0.35 would indicate growing bullish momentum, while a move past $0.50 could strengthen the case for a larger uptrend.

The resistance at $0.65 is a key barrier. If buyers can push through this level, the next potential targets range between $0.80 – $0.90. Conversely, failing to clear this selling wall could lead to price rejection and renewed downward pressure.

XLM Volume Signals and Market Sentiment

A previous volume spike accompanied XLM’s price increase, demonstrating strong buying interest. However, the current volume remains moderate, suggesting a period of consolidation. If volume surges alongside a breakout above the falling wedge, it could confirm a bullish shift.

According to CW, traders should watch for a daily close above $0.35 to confirm upward momentum. If the buying pressure intensifies, XLM might challenge the higher resistance levels. On the other hand, if the price falls below $0.25, further declines could be anticipated.

Stellar is trading within a crucial support zone, with a buying wall providing stability. CW’s analysis highlights a bullish reversal pattern that could trigger a rally if the price manages to break key resistance levels. However, the thick selling wall at $0.65 remains a major hurdle.