- •Stellar (XLM) will press against the wedge resistance, and the breakout confirmation zone to be observed will be in the range of $0.395 -$0.40.
- •Fibonacci retracements point to $0.44, $0.47, and $0.50 as key upside targets after confirmation.
- •The support at $0.36 is crucial; failure may reveal $0.344 and nullify the bullish wedge pattern.
Stellar (XLM) is trading at a decisive point after weeks of compression inside a descending wedge. With price action coiling near $0.386, the market is watching whether resistance at $0.395 can break, potentially unlocking a run toward the $0.50 level.
Wedge Formation and Market Structure
Stellar’s price has been contained in a descending wedge pattern since August, marked by lower highs capped at resistance and a horizontal base around $0.36. This structure is often seen as a reversal setup when supported by sustained accumulation.
Recent reactions suggest a change in character within the pattern. Instead of deeper sell-offs, buyers have stepped in earlier, producing higher lows inside the wedge. This adjustment reflects steady accumulation pressure, indicating that demand is absorbing selling activity at key zones.
Analyst Ali (@ali_charts) noted that Stellar now stands at a critical stage. The resistance trendline has limited rallies for two months, but growing pressure at this level points to an imminent test of breakout potential.
Breakout Confirmation and Upside Targets
The first technical barrier lies between $0.395 and $0.40. A confirmed breakout above this range would signal the end of wedge compression, opening a path toward higher retracement zones. The immediate focus would then shift toward Fibonacci levels.
The $0.382 retracement coincides with $0.44 and the $0.5 coincides with $0.47. The $0.618 retracement coincides with the $0.50 level, which is of importance both technically and psychologically. A rally to this level would mark a 30% gain from current pricing.
Market projections suggest a likely breakout‑retest‑continuation pattern. Traders may see Stellar breach resistance, revisit the $0.39–$0.40 zone as support, and then build momentum toward higher objectives. Such retests often provide disciplined entry opportunities.
Risk Levels and Bearish Scenarios
While the setup tilts bullish, risks remain tied to the $0.36 support. A failure to break above $0.395 could trigger another pullback, bringing price action back into the wedge’s lower boundary.
If this floor gives way, Stellar would face renewed downside toward $0.344, last tested in mid‑September. Such a move would weaken market confidence and confirm the continuation of bearish pressure.
For now, the market bias favors a breakout. Multiple defenses of $0.36, coupled with higher lows, reflect mounting pressure. Yet the resolution hinges on whether buyers can finally overcome wedge resistance and sustain momentum toward $0.44–$0.50.