- Stellar (XLM) has rebounded with an 8% surge, reclaiming key support levels and showing potential for further gains if it breaks critical resistance at $0.294.
- Analysts highlight a bullish flag pattern, suggesting XLM could target $1.60 if momentum sustains, though market conditions remain a key factor.
After experiencing recent declines, Stellar (XLM) has staged a remarkable rebound, surging 8% in the last 24 hours. This upward movement has caught the attention of traders and investors, as XLM demonstrates resilience and a potential shift toward bullish momentum.
XLM’s Impressive Rebound
The cryptocurrency market opened Wednesday with most digital assets in the green, and Stellar was no exception. The resurgence of XLM comes as the market anticipates the Federal Reserve’s decision on interest rates, with analysts largely expecting no changes. This uncertainty has led traders to closely watch price action, and Stellar has emerged as one of the notable gainers.
After dipping to $0.262 on Monday, XLM reversed course and climbed to highs of $0.29. As of the latest updates, Stellar is trading at approximately $0.285, reflecting a 6.39% gain over the last 24 hours and a 12% increase over the past week.
Key Resistance and Support Levels
With XLM gaining strength, traders are monitoring critical resistance and support levels to determine the asset’s next potential move. Notably:
- XLM has reclaimed a position above the 200-day simple moving average (SMA) at $0.27, a crucial support level.
- The next resistance level to watch is $0.294. If XLM breaks above this point, it could challenge the 50-day SMA at $0.315, which bears are expected to defend aggressively.
- If bullish momentum continues, XLM could target further highs of $0.514 and even $0.60 in the long run.
Bullish Pattern Signals Potential Upside
A key indicator on XLM’s three-day chart is signaling further upside potential. Analysts have identified a bullish flag pattern, suggesting that if XLM maintains support above $0.24, it could be primed for a significant rally. Some projections even suggest a possible target of $1.60 should the pattern be validated.
Market Outlook and Investor Caution
Despite the recent bullish momentum, market participants remain cautious. Broader macroeconomic factors and overall cryptocurrency market trends could still impact XLM’s price movement. Traders are advised to monitor developments closely, especially in light of regulatory decisions and global economic shifts.
As XLM continues to show signs of strength, the coming days will be crucial in determining whether this rally marks the beginning of a sustained uptrend or a temporary bounce before further consolidation.
