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With the asset recently printing a higher low on the charts, Stellar is displaying early indications of a possible trend reversal. This might suggest that buyers are gradually taking over to counteract pressure from sellers. Declining volume levels, however, indicate that bullish momentum is not yet fully confirmed, so caution is still required.
XLM has shown some resilience after reaching a local low of $0.315 and is currently trading around $0.341. It appears that buyers are trying to regain control and sellers are losing strength, as indicated by the higher low formation, than previous lows around $0.300. Recovering the $0.365-$0.380 range, which corresponds to the 50 EMA, is necessary for a confirmed reversal of XLM.
Strong bullish signals would indicate a breakout above $0.398 and pave the way for a move toward $0.420 and higher. A significant issue is the volume profile's decline. Even though the low was higher, the lack of substantial buying volume raises the possibility that the recovery is not very strong. In the absence of a spike in demand, any upward movement might be feeble and encounter fierce resistance close to $0.365.
Dan BurginA second sell-off could push XLM back toward $0.315 or possibly test the crucial support zone at $0.300 if Stellar is unable to maintain above $0.341. The reversal scenario might be deemed invalid by a breakdown below this level, which would push XLM even lower.
Early reversal signals are being flashed by Stellar, but the volume decline raises questions about whether any rally can last. A full-fledged reversal may be in progress with a target of $0.420 or higher if buying pressure builds and XLM breaks above $0.365 to $0.398. However, the asset might return to lower levels if $0.341 is not held. Before assuming a bullish breakout, traders should keep a close eye on volume for confirmation.
Yuri Molchan
Gamza Khanzadaev
Dan Burgin
Vladislav Sopov