XLM Holds at $0.2261 Key Support Level Awaiting Reversal

XLM is currently holding steady at $0.2261, a critical support level that has historically acted as a pivot point for the asset. This level is formed by a confluence of a long-term trendline and a horizontal support zone on the weekly chart, making it a significant area for traders to monitor. A reversal from this zone could potentially trigger a major upward rally in the short term.

According to a widely followed technical analyst, if buyers confirm this level, the next resistance may appear at $0.4122 or $0.5262. Traders are watching for early signs of reversal before the price pushes toward the $0.6659 level. The analyst shared this view via TradingView and X, noting three key targets should a breakout follow: $0.4122, $0.5262, and $0.6659. The price action now hinges on whether the trendline support holds into July.

XLM’s current position near $0.2261 is not arbitrary. It rests directly above a key support area that combines trendline and horizontal zones. The weekly timeframe chart confirms that the price touched this zone several times during previous corrections before rebounding. Historically, this level acted as a pivot where momentum shifted from bearish to bullish. Traders are therefore watching closely for any signal that may confirm another potential bounce. If buyers re-enter at this zone, the trend could reverse sharply.

The analyst explained that this confluence of support often attracts technical traders looking for reversal setups. Such setups tend to deliver short-term rallies when paired with broader market recovery or increased demand. That expectation has placed increased attention on the coming weekly candle close.

A bullish scenario has been mapped out with three possible upside targets if the rebound materializes. The first target sits at $0.4122, which may act as a near-term resistance should XLM rise from its current zone. The second level is projected at $0.5262, a level associated with previous weekly highs before the recent decline. A breakout past this zone would indicate stronger buyer interest and growing momentum. Finally, a potential third leg could reach as high as $0.6659. This level aligns with historical chart structure formed during late 2024 before the sharp drawdown. Although these targets are conditional, they provide a clear roadmap for bullish traders.

These zones were marked directly on the shared chart, which used candlestick patterns and historical trend lines for reference. Traders are encouraged to watch for confirmation patterns like bullish engulfing candles or increasing volume. As Stellar’s price reacts to this major support, market watchers ask the critical question: will this level launch the next upward breakout? With the price trading at $0.2261 and the zone acting as a long-term structure, a failure to hold could invite further downside.

However, the presence of previous successful bounces at this level lends credibility to the bullish thesis. Traders are likely to respond quickly if reversal signals appear, making this zone a technical focal point. If XLM bounces, the recovery could shift market sentiment and place the three mentioned targets within reach. Until then, traders await the next move on the weekly chart.