XLM Reclaims Critical Support: Could a Rise to $0.44 Fuel Further Surge?
Stellar (XLM), the eighth-largest cryptocurrency by market capitalisation, has experienced a dramatic 78-80% price surge over the past week, reaching a peak of $0.5145 before a recent pullback to $0.43. This surge pushed XLM far above its 50-day and 100-day moving averages, leading to concerns about a potential mean reversion, or a return toward these averages, which could mean a 40% retracement toward the $0.30 support area.
Despite the recent pullback, technical and sentiment analysis point towards a bullish outlook for XLM. XLM’s futures open interest has hit all-time highs, and the asset is currently trading around $0.46, just below a critical resistance at $0.47. A breakout above this level could propel XLM towards $0.50 and even $0.56, marking continued bullish momentum.
Some analysts suggest that if broader altcoin sentiment stabilises or improves, XLM could retest higher levels. Short-term predictions for July 2025 range from $0.28–$0.30, with more optimistic scenarios reaching $0.45–$0.50 if DeFi adoption and buying pressure persist. Should another dip occur, the $0.24–$0.25 range is seen as a potential accumulation zone for buyers, offering support for future rallies.
However, the rapid price rise has left XLM vulnerable to a sharp correction. Technical indicators suggest the asset is overbought, and a 40% pullback towards $0.30 is possible if mean reversion takes hold. Failure to hold above $0.43–$0.41 could trigger a slide towards $0.35, invalidating the current bullish outlook. The crypto market remains highly speculative, and XLM’s price action is subject to rapid shifts based on macroeconomic factors, regulatory news, and trader sentiment.
Key levels to watch include $0.47 (immediate resistance), $0.43–$0.41 (key support), $0.30 (major support), and $0.24–$0.25 (accumulation zone). The potential for XLM bulls to continue their upward trend hinges on several factors, including breaking resistance, maintaining market sentiment, and avoiding a significant technical correction.
Traders should be aware of high volatility in either direction and conduct their own research before making investment decisions. The crypto markets remain inherently unpredictable.
Bitcoin, being the first and most well-known cryptocurrency, has also seen an increase in interest and trading activity. This surge in market activity fueled by Bitcoin (BTC) could potentially drive other cryptocurrencies, such as bitcoin (BTC) and XLM, to reach new highs within the broader finance and investing landscape.
Considering the current bullish outlook for XLM and the rising open interest for its futures, these conditions may stimulate more investing activity in other altcoins, including bitcoin (BTC), potentially leading to a broader cryptocurrency rally.
