Stellar (XLM) gains 2.62% as bullish momentum builds

Stellar (XLM) has been experiencing persistent selling pressure over the past few weeks, causing its price to drift down towards key support levels. This downward trend has been influenced by a cautious broader market sentiment. However, recent price movements suggest a subtle yet encouraging shift, with buyers gradually returning to the market. Early signals on the daily chart indicate that Stellar's price might be preparing for a meaningful recovery. The Relative Strength Index (RSI) has nudged back above the neutral level, and price candles on the Heikin Ashi chart are turning green, which has led many traders to speculate whether this marks the beginning of Stellar’s next upward trend.

Currently, XLM is trading near $0.2505, reflecting a 2.62% daily gain. The recent series of small-bodied Heikin Ashi candles transitioning to clear green indicates that bearish momentum has weakened, and buyers are stepping back in. XLM found support near the $0.24 level, which coincides with a region of historical buying interest from mid-April. This support level has been crucial in preventing further declines and has set the stage for a potential reversal.

The RSI currently stands at 52.72, slightly above the neutral 50 mark. This shift suggests that momentum is leaning towards the bulls for the first time in weeks. The RSI has bounced from oversold territory near 30 last month to cross its moving average, a classic sign of a potential mid-term trend reversal. If this trajectory holds, the RSI could push towards 60–65, strengthening the bullish sentiment and encouraging new buyers to enter the market.

Analyzing the price structure, we see a clear ladder of upcoming resistance levels. The immediate target for XLM price is around $0.27, a level marked by the nearest Fibonacci projection. Should this break, the next psychological resistance sits at $0.30, where sellers previously overwhelmed buyers in May. To test how realistic this breakout is, consider the recent daily range. Stellar price moved from $0.2411 (low) to $0.2539 (high) — a spread of roughly $0.0128 in a single day. If similar daily moves persist for a week, XLM price could gain up to $0.0896, adding this to the current price of $0.25 implies a short-term target of $0.34, which aligns well with the higher resistance marked on the chart around $0.35. However, for this scenario to play out, daily volume must increase and the broader market must maintain a risk-on sentiment.

While the bounce is promising, the broader trend shows that Stellar price has struggled to hold above $0.30 for several months. To build a sustainable recovery, the price must close above $0.27–$0.30 on strong volume and maintain the RSI above 55 for multiple sessions. If this happens, traders could see momentum accelerate towards $0.34–$0.35 by the end of this month. However, if the XLM price fails to hold the $0.24–$0.25 support zone, bears could drag XLM back towards $0.22, invalidating the bullish setup. For now, traders should watch the RSI’s behavior closely and look for confirmation through daily closes above resistance.

Stellar (XLM) shows early signs of a trend reversal with supportive RSI signals and higher lows forming. A close above $0.27 will strengthen the case for a run to $0.30–$0.35 this month. However, buyers should remain cautious — if broader crypto sentiment turns risk-off or Bitcoin pulls back sharply, XLM could revisit support near $0.22. For now, this recovery looks cautiously promising — with momentum favoring the bulls if buyers defend the $0.24–$0.25 range in the coming days.