- Stellar (XLM) has battled a descending resistance trend line for over 1,600 days.
- The $0.37 horizontal support is critical—holding it could fuel a breakout toward $0.48 and beyond.
- Wave count and wedge patterns suggest the dip may be done, with $0.628–$0.665 as the next big upside target.
Stellar has been fighting the same battle for years now—more than 1,600 days under a descending resistance line, with multiple failed breakout attempts in the past twelve months. Each push higher was met with rejection, keeping XLM locked in a long-term downtrend.
Now things are getting interesting again. The token is pressing against a crucial horizontal support level around $0.37. Whether this level holds or breaks could shape Stellar’s direction for the next cycle—bullish reversal or more pain ahead.
XLM Price Analysis: The $0.37 Battleground
On the weekly chart, Stellar’s price has been sliding under diagonal resistance since its peak back in May 2021. Along the way, the $0.37 zone has flipped roles multiple times, acting as both a floor and a ceiling.
Currently, XLM trades right inside this key zone. A clean bounce here could fuel another run toward the diagonal resistance, now sitting around $0.48. And here’s the catch—resistances usually weaken after repeated hits, so another test might finally crack it.
Momentum signals, however, are stuck in limbo. The RSI hangs at 50, showing no real strength either way, while the MACD barely floats above zero. Until Stellar closes decisively above $0.37, the trend remains a coin toss.
Has Stellar’s Dip Finally Bottomed?
Short-term charts hint that the worst of the pullback might be over. The decline has formed a descending wedge, a pattern that often resolves to the upside. While there’s still a small chance of another minor dip, the structure suggests the bottom is likely already in place.
Wave count analysis also paints a bullish setup. If correct, Stellar has either finished or is wrapping up wave four in a five-wave cycle. That means the next big move could be wave five—and its projected target sits between $0.628 and $0.665.
Stellar Breakout on the Horizon
If Stellar manages to defend the $0.37 horizontal level, the stage is set for its strongest rally of this cycle. A wedge breakout in the short term could spark momentum, sending the token toward that $0.628–$0.665 zone.
Should buyers step in with conviction, the move could even trigger a parabolic rally—potentially setting a new cycle high and breathing fresh life into Stellar’s long-term outlook.
