XLM's Battle for $0.32 Could Define Its Next Bullish Chapter

Stellar (XLM) is testing critical support levels following a rejection from the $0.45 resistance, a key inflection point for the asset. At press time, the token trades near $0.3613, inching closer to the $0.32–$0.30 demand zone, a historically significant range that could determine the trajectory of its next move [1]. The price action reflects a consolidation phase after a sharp summer rally, with analysts noting that respect for key resistance levels often precedes a resumption of bullish momentum [1].

The technical landscape for XLM shows a mix of pressure and potential. The 9-period Exponential Moving Average (EMA) currently sits at $0.3709, acting as a near-term resistance, while the $0.32–$0.30 zone remains the focal point for bulls. If this area holds firm, it could reinforce the asset’s bullish narrative and potentially push XLM back toward $0.45 and, with sufficient momentum, even toward $0.55 [1]. Conversely, a breakdown below $0.30 would signal a shift in market sentiment and could prolong the correction phase.

Recent on-chain activity supports the idea of consolidation. Long liquidations have surged as XLM moves lower, with $192K in long positions closed on September 2 compared to $55.75K in short liquidations. OKX accounted for the bulk of this, closing $138K in long positions. This trend mirrors the pullback from $0.45 and underscores the importance of the $0.32–$0.30 range as a psychological and technical battleground [1].

Institutional interest has also shown signs of returning. On August 28, XLM rebounded from the $0.38 support level to close near $0.39, with trading volumes surging above 25.4 million units. Analysts interpret this as a sign of renewed institutional accumulation, with corporate treasurers increasingly exploring blockchain-based payment solutions amid shifting global trade policies. The 39% increase in institutional trading activity compared to historical averages highlights growing confidence in the asset as a faster and cheaper alternative to traditional settlement systems [3].

Looking ahead, the next few sessions will be pivotal. If XLM can hold the $0.32–$0.30 zone, it could trigger a rebound toward $0.45, potentially leading to a fresh push toward $0.55 if momentum persists. However, a breakdown below $0.30 would open the door for further declines, with deeper correction levels looming. The market will also be watching the upcoming Protocol 23 upgrade scheduled for September 3, although its immediate impact on price remains uncertain [1].

Despite an 11% monthly decline, XLM’s performance reflects broader macroeconomic pressures and geopolitical uncertainty, which have accelerated interest in decentralized settlement networks. Analysts remain cautiously optimistic about a potential recovery to $0.50 in the near term, driven by institutional activity and the token’s role in cross-border payments [3].

Source:

[1] Is Stellar (XLM) Setting Up for Its Next Major Breakout? (https://cryptopotato.com/is-stellar-xlm-setting-up-for-its-next-major-breakout/)

[2] Stellar vs. Ethereum: Here's What You Need to Know (https://ownrwallet.com/blog/stellar-vs-ethereum-heres-what-you-need-to-know/)

[3] Stellar Rebounds 3% on Institutional Interest as Blockchain Payments Gain Traction (https://www.coindesk.com/markets/2025/08/28/stellar-rebounds-3-on-institutional-interest-as-blockchain-payments-gain-traction)