- •XLM price faces a pivotal test at $0.41, a crucial resistance level aligning with the 0.382 Fib retracement and double-bottom neckline.
- •A confirmed breakout above $0.41 could push XLM toward $0.48, with significant support near $0.34–$0.35.
- •Institutional support for Stellar grows as Bitcoin.com Wallet and Grayscale back XLM, enhancing its market accessibility.
Stellar (XLM) has recently emerged from a strong bullish breakout, surpassing its descending trendline resistance. As the cryptocurrency hovers near $0.40, it is now testing a critical resistance zone at $0.41. This area coincides with the 0.382 Fibonacci retracement level, which has traditionally been a key marker for trend continuation or reversal. Additionally, this zone serves as the neckline of a bullish double-bottom pattern, strengthening the significance of the price action.
A successful close above $0.41 on the daily chart would signal a breakout from the double-bottom formation, likely propelling XLM toward the next significant resistance at $0.48. This level aligns with the 0.786 Fibonacci retracement, which marks a strong supply zone and could serve as the next target for XLM bulls. A breakout above $0.41 would not only confirm the double-bottom pattern but also set the stage for a measured move upwards.
Support Levels and Potential Rejection
However, traders should be mindful of the potential for price rejection at $0.41. If XLM fails to sustain above this resistance, the price could retreat toward its recent breakout point around $0.38. In the worst-case scenario, XLM may revisit the $0.34–$0.35 demand zone, where significant buying interest has previously emerged. A breakdown below this support would undermine the bullish double-bottom structure and could result in further downside pressure.
Institutional support has also played a pivotal role in Stellar’s recent price action. Bitcoin.com Wallet, which recently integrated full support for XLM and Stellar-based assets, now offers users access to decentralized finance (DeFi) features such as swaps, liquidity pools, and yield farming. This move significantly enhances the usability of XLM within the DeFi ecosystem.
Moreover, institutional interest in XLM continues to grow as prominent financial institutions back the cryptocurrency. The newly approved Hashdex Nasdaq Crypto Index US ETF includes XLM as part of its diversified crypto portfolio, while Grayscale’s filing for a spot Stellar ETF could further bolster its market position. These developments signal growing confidence in Stellar’s long-term potential, which could add more upward pressure to XLM's price action in the coming weeks.