Stellar (XLM) is showing signs of stability within a strong buying zone despite recent downturns.
XLM Holds Support Amid Buying Wall
Crypto analyst CW highlighted that XLM remains within a buying wall zone, providing strong support. The price has yet to break its previous low, suggesting weakening selling pressure. Consolidation within this zone signals potential accumulation before an upward move. CW noted that breaking the falling wedge pattern could initiate a rally. The buying wall at the $0.25-$0.28 range acts as a crucial accumulation area. A breakout could lead to a bullish reversal if the price holds and buyers gain control. However, failure to maintain this support might trigger further downside pressure. CW also pointed out that resistance levels at $0.35-$0.38 and the major hurdle at $0.65 are key milestones to overcome.
XLM Volume Signals and Market Sentiment
A previous volume spike accompanied XLM's price increase, indicating strong buying interest. However, the current volume remains moderate, suggesting a consolidation phase. CW emphasizes monitoring a daily close above $0.35 for confirmation of upward momentum. If buying pressure intensifies, XLM could challenge higher resistance levels. On the other hand, if the price falls below $0.25, further declines could ensue.
Conclusion and Forecasts
Stellar is trading within a crucial support zone, where the buying wall provides stability. CW's analysis highlights a bullish reversal pattern that could trigger a rally if the price breaks key resistance levels. The thick selling wall at $0.65 remains a significant barrier.
XLM maintains confident positions within the buying zone, with potential for growth if resistance levels are overcome. However, breaking through the $0.65 selling wall will be challenging.
