Stellar (XLM) is showing signs of stability after a downturn lately, holding within a strong buying zone.
Despite a nearly 14% weekly drop, the price has seen a slight recovery in the past 24 hours. At press time, the price sits at $0.2868. Crypto analyst CW (@CW8900) shared an analysis highlighting critical support and resistance levels that could determine XLM’s next move.
What you'll learn 👉
XLM Holds Support Amid Buying Wall
CW pointed out that XLM remains inside a buying wall zone, providing strong support. The price has yet to break its previous low, suggesting a weakening selling pressure. The current consolidation within this zone signals potential accumulation before an upward move.
$XLM is currently in the buying wall zone. The buying wall provides support.
— CW (@CW8900) February 26, 2025
Also, it did not break the previous low in this decline.
The rally in $XLM will start by breaking the pattern. And there is a thick selling wall up to $0.65. pic.twitter.com/hIr37C6Jye
According to CW’s analysis, breaking above the falling wedge pattern could initiate a rally.
The buying wall at the $0.25 – $0.28 range is acting as a crucial accumulation area. A breakout could lead to a bullish reversal if the price holds and buyers gain control. However, a failure to maintain this support might trigger further downside pressure.
CW’s analysis highlights a thick selling wall extending up to $0.65. Before reaching that level, XLM must first overcome resistance between $0.35 – $0.38. A confirmed breakout beyond $0.35 would indicate growing bullish momentum, while a move past $0.50 could strengthen the case for a larger uptrend.
The resistance at $0.65 is a key barrier. If buyers push through this level, the next potential targets range between $0.80 – $0.90. Conversely, failing to clear this selling wall could lead to price rejection and renewed downward pressure.
Read also: Time to Sell Dogecoin? Crypto Veteran Warns of 70% DOGE Price Crash
XLM Volume Signals and Market Sentiment
A previous volume spike accompanied XLM’s price increase, showing strong buying interest. However, the current volume remains moderate, suggesting a consolidation phase. If volume surges alongside a breakout above the falling wedge, it could confirm a bullish shift.
CW emphasized that traders should monitor a daily close above $0.35 for confirmation of upward momentum. If the buying pressure intensifies, XLM could challenge the higher resistance levels. On the other hand, if the price falls below $0.25, further declines could be expected.
Stellar is trading within a crucial support zone, with a buying wall providing stability. CW’s analysis highlights a bullish reversal pattern that could trigger a rally if the price breaks key resistance levels. The thick selling wall at $0.65 remains a major hurdle though.
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