XLM Faces Pressure Amid Broader Market Cooldown
Stellar (XLM) is hovering around a critical support zone between $0.29 and $0.295, as the broader cryptocurrency market experiences renewed pressure. Bitcoin has slipped 2% and Ethereum 3%, setting a cautious tone across major altcoins.
According to a market update from Scopuly—Stellar Wallet (@scopuly), Stellar’s recent ~4% decline has placed it directly on a key support range that could determine its short-term trajectory. The 4-hour chart now displays a descending triangle pattern—often seen in consolidation phases—that could precede either a short-lived rebound or a deeper correction.
Market observers note that the support area around $0.29–$0.295 remains a critical battleground for bulls and bears. If buyers manage to defend this zone, it may stabilize the token and encourage renewed momentum. A decisive break above $0.3052 could pave the way for a test of $0.3216, signaling the start of a potential short-term recovery.
However, sustained selling pressure or a clean breach below $0.29 could lead to extended downside movement. This level has previously acted as a strong floor, and losing it might accelerate declines as market sentiment remains sensitive to Bitcoin’s performance.
Technical Outlook Points to Short-Term Rebound Potential
The descending triangle observed on XLM’s 4-hour chart suggests consolidation within a narrowing range. While such formations often carry a bearish bias, short, sharp rebounds can occur before any major breakdown. These rebounds typically arise from liquidity tests near lower boundary zones.
If bulls succeed in defending the $0.29 support, short-term momentum could shift toward $0.3052. Reclaiming this resistance level may restore confidence among traders eyeing the $0.3216 level as the next upside target. Increased volume around these thresholds could confirm renewed market participation.
Conversely, a sustained close below the $0.29 mark may open the door to a deeper pullback. In that scenario, traders may seek lower accumulation levels as XLM reacts to overall market direction. For now, Stellar remains at a pivotal juncture where upcoming sessions could define its near-term course.