Stellar (XLM) is showing signs of strength, reclaiming a historic support level that could pave the way for a bullish rally. With a solid technical structure and key confluences in place, the cryptocurrency may be poised for a breakout toward the $0.35 price level.

Stellar Trading at a Critical Technical Level

Currently, Stellar is positioned at a significant technical level that has historically acted as a major resistance. This zone, recently flipped into support, has the potential to act as the foundation for upward momentum. Stellar’s price action shows a clear pattern of higher highs and higher lows, reinforcing the bullish market structure. With a 1.17% bounce off this support level, XLM appears primed for further gains.

Key Technical Points to Watch

  • Key Support Reclaimed: The $0.20 level, which had been a resistance since April 2022, has now turned into support.
  • Bullish Market Structure: Stellar’s price is forming a rising channel characterized by higher highs and higher lows.
  • Confluence of Support: The $0.20 zone is bolstered by the 200-day moving average (MA), point of control (POC), and channel trendline.
  • Volume Behavior: A decline in volume at support often precedes a significant influx, which could drive prices higher.

High-Timeframe Breakout

Stellar’s confirmed breakout above the $0.20 level marks an important milestone. This level, which had suppressed price movement since Q2 of 2022, has been successfully retested as support throughout 2025. The breakout aligns with a broader shift in market sentiment, enhancing bullish prospects.

Ascending Channel on Intraday Charts

On the 4-hour chart, Stellar is trading within a bullish ascending channel. The price is currently testing the lower boundary of this channel, a zone supported by the 200-day moving average and the POC. These technical indicators suggest that this area is a robust demand zone, further reinforcing the likelihood of upward movement.

“Volume has declined at the support zone, a behavior often observed before a strong directional move.”

With a 1.17% bounce already underway, Stellar could be preparing for a more significant move. If the next influx of volume is dominated by buyers, the price could accelerate toward the $0.35 resistance level—a threshold that hasn’t been tested since late 2023.

What to Expect Next

If the support at $0.20 holds and is backed by an increase in trading volume, Stellar may rally toward the $0.35 region in the short term. The bullish structure and alignment of key technical levels indicate a positive outlook, provided the support zone remains intact. Traders and investors should monitor volume closely, as it will play a pivotal role in determining price direction.

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