Stellar (XLM) price is forming a descending channel on a daily timeframe. A successful break through its trendline may signal the start of a bullish rally.

Formation of Descending Channel

Since early April 2024, the price of XLM has been moving in a declining channel, marked by a string of lower highs and lower lows. This pattern has exerted downward pressure on XLM's price, with the lower trendline serving as support and the upper as a crucial level of resistance.

Potential Breakout and Retest

Analysts suggest that a successful breakout from the descending channel would likely be followed by a retest of the former resistance level, confirming its turn into support. If XLM holds this level after a retest, it may trigger a substantial price increase towards approximately $0.150, the previous key resistance in April 2024.

Support and Resistance Levels

Currently, XLM has strong support around $0.090, the lower boundary of the descending channel. On the upside, immediate resistance lies near the $0.095-$0.100 region, with the next major hurdle expected around $0.150, where XLM might face renewed selling pressure.

Should Stellar successfully breach the upper boundary of the descending channel, it could indicate the end of a prolonged downtrend, offering new opportunities for investors.