Stellar (XLM) Faces Key Support Test: Is a Rebound Imminent or Will It Break Below $0.3851?

Tap the avatar to go live and catch the bull market!

Stellar (XLM) is currently priced at $0.3728, down 8.28% in the last 24 hours and 10.36% over the past week. Despite the short-term price decline, analysts believe XLM is approaching the key support level of $0.3851, which has historically attracted significant buying interest and may pave the way for a rebound.

Technical analysis indicates that $0.3851 is a crucial support zone, coinciding with the 0.786 Fibonacci retracement level, which typically signals that the market is oversold. If the support level holds, XLM's upside targets are $0.6396 and $0.8278, offering significant upside potential.

However, in the short term, the MACD indicator shows bearish signals, and activity in the derivatives market has decreased, with trading volume down 31.62%. Nevertheless, bullish market sentiment remains dominant, particularly on Binance and OKX platforms where the proportion of long positions exceeds 2.0, indicating that investors still see potential for a rebound in XLM.

On-chain data shows that the total value locked (TVL) in the Stellar ecosystem is $46.53 million. Although it has decreased, its applications in decentralized finance (DeFi) still hold significant importance. Additionally, XLM's stablecoin market cap has reached $143 million, further validating its utility in the digital asset space.

In summary, whether XLM can maintain the support level of $0.3851 will determine its future trend. If the price successfully reverses the downward trend, it may lead to a significant rise, offering new growth opportunities for the market.

Tap the avatar to go live and catch the bull market!