Stellar’s XLM price is approaching a major technical decision point as its weekly price structure becomes increasingly compressed. Buyers continue defending a key horizontal support zone while sellers maintain pressure at a long-term descending trendline.
Crypto analyst The Boss highlighted the setup, noting that XLM is moving toward the apex of this macro compression. A confirmed breakout above the descending resistance could mark a significant change in market structure and potentially open the path toward higher price levels.
XLM Price Nears Critical Macro Resistance
According to The Boss, XLM has established a firm foundation above its horizontal demand area while repeatedly testing the major descending resistance line.
The narrowing structure suggests that the battle between buyers and sellers is becoming increasingly concentrated. A decisive breakout above the long-term trendline would weaken the broader bearish structure and could turn the former resistance into support.
Source: The Boss’ X Post
If that breakout is confirmed, the analyst identified potential upside targets around $0.25, $0.33, and $0.44. However, the XLM price must first demonstrate sustained buying pressure rather than producing a brief move above resistance.
Also Read: XLM Price Eyes $0.30 as Bullish Setup Meets Expanding USDT Liquidity
XLM Price Recovery Holds Above Key Support
TradingView chart analysis shows that the XLM price has recovered strongly after falling toward the $0.1550 support zone in late August.
The rebound pushed the cryptocurrency toward approximately $0.2200, where sellers quickly emerged. Since then, XLM has stabilized around $0.1876, consolidating near its short-term moving averages.
Source: TradingView
This stabilization keeps the recovery structure intact. If buyers continue defending the current area, another attempt at higher resistance could develop. A loss of the recent support structure, however, could delay the bullish scenario and keep the XLM price locked inside its broader range.
200-Day EMA Becomes Key for XLM Price Breakout
The technical momentum is slightly bullish, as indicated by the RSI value of 55.81. The RSI reading indicates improved buying strength but does not point to an overbought territory for XLM.
The first obstacle comes from the 200-day EMA at around $0.18872. A clear breakout above this price might boost the uptrend and make the psychological resistance at $0.2000 significant again.
A breakout above $0.2000 could bring back attention to the recently seen $0.2200 resistance level, whereas a rejection from around the 200-day EMA could start another consolidation phase.
XLM Volume Falls as Traders Remain Cautious
However, in spite of an improvement in the technical configuration, there has been a decline in the participation of market players. According to CoinGlass data, there is a fall in the trading volume of XLM by 28.19%, which is now at $162.80 million, while open interest declined by 1.44%, and it is currently at $194.21 million.
Source: Coinglass
The fall in both indicators implies that the participants are unwinding leveraged positions and waiting for further confirmation prior to taking any new position.
With bulls, an increase in volume at the time of the breakout would offer better evidence that new demand is behind the breakout. Otherwise, XLM would have difficulty sustaining its move past the resistance level.
Stellar Network Activity Supports Recovery Phase
The network activities of Stellar offer a more solid foundation for the emerging price structure. As per the information provided by ALLINCRYPTO, the network handled around 11.6 million transactions just on Sunday.
This shows that despite the continuing consolidation process, there is continuous use of the blockchain. Although an increase in transactions doesn’t mean an increase in the price of XLM, its consistent use can bolster the adoption story of Stellar.
What Comes Next for XLM?
Currently, the XLM price is undergoing an important test at the $0.18872 200-day EMA level, with subsequent resistance at $0.2000 and $0.2200. The breaking of the long-term descending trendline may boost the bullish pattern formation and bring $0.25, $0.33, and
But in the event of failure to break through this resistance level, XLM will remain in a consolidation pattern and focus on its support levels. Currently, traders are waiting for XLM to make a breakout due to the presence of momentum and high trading activities coupled with increasing volume.
Also Read: XLM Price Eyes $0.681 as Rising Network Activity Strengthens Bullish Outlook
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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