Stellar (XLM) is approaching critical support levels as it faces downward pressure in the crypto market.
Rose Premium Signals shared an analysis via X, highlighting potential price rebounds if these support zones hold firm. The technical outlook suggests a mixed scenario with both bullish and bearish possibilities depending on market behavior.
What you'll learn 👉
Key XLM Price Levels to Watch
The analysis emphasizes two major support levels for XLM: $0.2875 and $0.2006. At press time, the price is above these two levels trading around $0.3458.
The $0.2875 zone aligns with the 0.618 Fibonacci retracement level, marking a historically relevant area for potential reversals. If this level fails, the $0.2006 support, corresponding to the 0.786 Fibonacci retracement, serves as a deeper safety net for buyers.
On the upside, XLM faces resistance at $0.4500, considered a mid-term target if a rebound occurs. Beyond this, $0.6090 is identified as a long-term resistance point and a major upside target, contingent on sustained bullish momentum. These levels form the basis of potential price trajectories in the coming weeks.
Indicators Show Potential for a Rebound
Technical indicators offer insights into XLM’s price action. The Relative Strength Index is nearing oversold levels, suggesting a possible reversal if buyer interest emerges.
The alignment of Fibonacci retracement levels with historical support zones adds further credibility to these price targets. This confluence of technical factors supports a cautious optimism for recovery, provided the support levels hold and market sentiment improves.
Rose recommends monitoring the $0.2875 and $0.2006 zones closely for confirmation of any trend reversal.
Read also: Monero (XMR) Price Approaching Resistance: Is a Major Move Coming?
Potential Scenarios for XLM’s Price Movement
A successful defense of the $0.2875 support could trigger a rebound toward $0.4500. If buying pressure builds, the price might test the $0.6090 resistance level.
However, a breakdown below $0.2006 could lead to extended bearish activity, potentially targeting $0.1500 or lower. Market participants are advised to observe XLM’s price behavior near the support zones to gauge future trends.
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