Is Stellar (XLM) Setting Up for Another Surge After Recent Pullback?

XLM Price Cools After Explosive Breakout: What’s Next?

Stellar (XLM), the native cryptocurrency of the Stellar blockchain, recently made headlines with its powerful breakout rally. Following months of consolidating within a descending channel and horizontal trading range, XLM surged past the crucial $0.33 resistance level, sparking a run that sent prices soaring to $0.52—the highest level seen since January.

This breakout was supported by a significant uptick in trading volume, highlighting strong bullish momentum as XLM left its previous trading range behind. Investors and traders rushed in as the price action flipped the long-term ceiling into fresh support, driving the coin to new multi-month highs.

Market Consolidation as Traders Take Profit

After peaking at $0.52, XLM has pulled back to around $0.42. This recent dip aligns with a broader trend of short-term profit-taking, especially after such a rapid rally. Notably, the price remains above the former resistance at $0.33—a level now serving as strong support, indicating that the bullish market structure for Stellar remains intact.

According to crypto.news, several catalysts have contributed to XLM’s recent strength. These include a surge in the supply of stablecoins native to the Stellar Network, which hit a record $647 million, and a notable increase in futures open interest, both of which have fueled further market participation and optimism.

Stellar (XLM) Price Outlook: Correction or Reversal?

Despite a 10% pullback from local highs, technical analysis continues to favor Stellar’s bullish trajectory. The current main support at $0.33 is yet to be broken, and as long as this level holds, the market is likely experiencing a healthy correction rather than a complete trend reversal.

If buying pressure persists, XLM could retest recent highs of $0.52 and even aim for the January peak of $0.64, which would represent a substantial 52% increase from current prices. Technical indicators offer a cautiously optimistic picture: the Relative Strength Index (RSI) has cooled to 57 from overbought conditions, while XLM is still trading above its 20-day Exponential Moving Average (EMA), which is currently acting as dynamic support.

However, traders should monitor the 20-day EMA closely; a decisive break below this level could open the door to a more pronounced retracement. For now, Stellar’s ongoing pullback remains within the bounds of a larger bullish uptrend, keeping crypto investors optimistic about the coin’s medium-term prospects.