Stellar (XLM) Turns Bullish: Can It Break the $0.386 Resistance Wall?

Stellar (XLM) is once again on the radar of crypto traders after flashing its first bullish signal in weeks. With technical indicators aligning and investor optimism returning, market participants are closely watching whether the altcoin can finally break through its stubborn resistance wall at $0.386.

If successful, this breakout could open the door to higher levels and set the stage for a broader rally across the altcoin market. But the path forward remains uncertain, with both bullish and bearish scenarios in play.

A Long-Awaited Bullish Signal

For weeks, Stellar has traded sideways, struggling to build momentum as investors focused on Bitcoin and Ethereum. That changed recently when the SuperTrend indicator flipped bullish for the first time since late August, according to market analyst Ali (@ali_charts).

This signal, combined with XLM establishing firm support at $0.363, has given traders a reason to take a fresh look at the token. Trading volume has also started to increase in this support zone, suggesting renewed accumulation by buyers.

The question now is whether this is simply a short-lived bounce or the start of a sustained bullish trend.

Why $0.386 Is a Key Resistance Level

The $0.386 price level has acted as a critical ceiling for Stellar in recent weeks. Every attempt to break above it has been met with selling pressure, making it a key battleground for bulls and bears alike.

Analysts say a successful breakout here could quickly open the door to higher targets at $0.390 and $0.400. Beyond that, medium-term forecasts point to potential gains toward $0.45–$0.48 by October 2025.

Institutional traders, however, are setting their sights on an even more important level: $0.43. A confirmed breakout above this threshold could ignite strong momentum, potentially carrying XLM toward its 52-week high near $0.50.

Technical Indicators Support Momentum

Beyond resistance levels, technical indicators are reinforcing the bullish case for Stellar.

• MACD Positive: The Moving Average Convergence Divergence (MACD) has flipped into positive territory, signaling that upward momentum is strengthening.

• RSI Neutral: Stellar’s Relative Strength Index (RSI) currently sits at 48, leaving plenty of room for further gains without the risk of being considered “overbought.”

• Accumulation Patterns: Analysts have spotted hidden accumulation zones, suggesting that larger wallets may be quietly building positions ahead of a potential breakout.

These indicators collectively point toward a healthier market structure for Stellar compared to previous weeks.

The Role of Market Conditions

The broader cryptocurrency market has also played a role in Stellar’s momentum shift. After a period of volatility, the market has stabilized, creating a more favorable environment for altcoins.

Bitcoin’s consolidation has allowed smaller tokens like XLM to regain traction, and the overall sentiment in the altcoin space has turned more optimistic. If Bitcoin and Ethereum maintain stability, Stellar could benefit from renewed capital inflows into mid-cap tokens.

Bullish Scenario: Targets to Watch

If Stellar breaks and holds above $0.386, traders are looking at the following upside targets:

• Short-term: $0.41–$0.42

• Medium-term: $0.45–$0.48 within the next 4–6 weeks

• Longer-term: A potential retest of its 52-week high near $0.50 if momentum continues

These targets are based on both technical setups and historical resistance levels.

Bearish Scenario: Risks Remain

Despite the bullish signals, risks remain for Stellar. If it fails to break above $0.386, the price could slide back toward key support zones.

Such a retracement would not necessarily kill Stellar’s bullish potential, but it could delay the breakout and frustrate short-term traders.

Current Market Snapshot

At the time of writing, Stellar (XLM) is trading at $0.384, reflecting a 3.5% intraday gain. The price is hovering just below the $0.386 resistance level, with volume expansion suggesting that traders are preparing for a decisive move.

Market watchers are paying close attention to whether buying pressure can build enough to push through this ceiling.

What Comes Next for Stellar?

With technical indicators turning bullish, accumulation patterns forming, and the broader crypto market stabilizing, Stellar is positioned for a potential breakout. But the next few trading sessions will be critical.

A clean and sustained break above $0.386 could mark the beginning of a new bullish chapter for XLM, possibly propelling it toward the $0.45–$0.50 range. On the other hand, another rejection at this level may extend the sideways pattern and leave traders waiting for a clearer signal.

For now, cautious optimism prevails. Traders and institutional investors alike are watching closely, knowing that Stellar’s next move could set the tone for its performance in the months ahead.

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