Stellar Lumens (XLM) is in a corrective phase but is approaching an important support area at $0.19. If bulls can defend this level, it may set the stage for a potential reversal.
Technical Analysis of Stellar (XLM)
Stellar (XLM) is in a corrective phase, yet price action is moving toward a significant area that represents a bullish order block. This level is supported by key swing lows and high time frame support at $0.19. This area could act as a structural pivot if bulls manage to defend the level and push the price higher.
Double Bottom Potential
The $0.19 level is more than just a line of support; it is a technical area packed with bullish orders. If the price holds here, it could lead to the formation of a double bottom, which is a strong trend reversal signal. For this structure to remain valid, the price needs to stay above the previous swing low. A break below the $0.19 support would nullify the double bottom setup and likely trigger continuation to new lows.
Price Movement Outlook
A key metric to monitor at this stage is the volume profile. Currently, volume is significantly below average, indicating a lack of active buying pressure. Without an influx of volume, the chances of a successful reversal diminish. If volume begins to surge near the $0.19 region, it could signal accumulation by larger participants, potentially targeting $0.30 and $0.35 as the next key resistance levels.
The situation at the $0.19 level is critical for Stellar Lumens. Success or failure to defend this position will determine the direction of the next price movement.
