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$XLM price is cooling off after a sharp rally to $0.52, but key support level is holding, keeping the bullish structure intact.
- $XLM broke out above $0.33 resistance after months of consolidation, hitting $0.52 — its highest level since January.
- Rally was fueled by a surge in Stellar’s stablecoin supply and futures open interest .
- Price has now pulled back ~10% to $0.42 as traders take profits.
- The $0.33 breakout zone now serves as strong support.
- Overall structure remains bullish but a break below the 20-day EMA could signal a deeper correction.
- Next resistance sits at $0.64, representing a potential 52% gain from current levels.
Stellar ($XLM) price has recently staged a massive breakout from both a long-standing descending channel and a horizontal consolidation range, pushing through the key resistance level around $0.33. That breakout propelled $XLM price to a multi-month high of $0.52, a level not seen since mid-January.
The move above $0.33, which had served as a stubborn ceiling during months of sideways action, was backed by a notable increase in trading volume, reinforcing the strength of the breakout. However, $XLM price has now pulled back to around $0.42, suggesting that traders are taking profits following that breakout rally.
As crypto.news pointed out earlier, $XLM’s explosive rally was likely fueled by a surge in the stablecoin supply on the Stellar Network to a record $647M and a sharp rise in futures open interest.
$XLM price rally over or just taking a breather? - 1"> $XLM short-term price prediction
Despite the current 10% pullback, the overall structure remains bullish as the price hasn’t broken below the $0.33 breakout zone, a key level that now serves as support after acting as resistance for several months. As long as $XLM price holds above this level, the breakout remains intact, and the recent dip is more likely a healthy correction within a larger uptrend rather than a reversal.
Looking ahead, sustained buying pressure could push $XLM price to reclaim $0.52 and potentially advance toward the January peak of $0.64, which would be a 52% gain from the current level.
Technical indicators support a cautiously bullish outlook, with the RSI cooling off from overbought levels to 57, and the price holding above the 20-day EMA, which is acting as support during the current pullback. However, a break below this EMA, which the price is currently testing, increases the likelihood of a deeper retracement.