Stellar Lumens (XLM) has caught traders' attention after a significant bounce from a key support level. Analysts caution on potential hurdles ahead for sustainable growth.
XLM Rally and Key Resistance
Current technical analysis indicates a potential 19% surge from the current $0.34 price, pushing XLM towards the $0.40 mark. However, this level aligns with a descending trendline that has previously capped rally attempts. Breaking this line would be significant and could open the path to $0.5 or higher.
Why the XLM Rally May Fail
Based on current market structure, the most likely scenario is another rejection at the descending trendline. If this occurs, XLM will likely retreat to retest the $0.31 support level, maintaining a pattern of lower highs.
Looking Ahead for XLM
The broader picture for XLM remains uncertain until it can definitively break its current technical constraints. Investors should watch for a clear break of the descending trendline before making significant decisions.
Even with positive momentum, traders should remain cautious and consider potential obstacles to further XLM growth.
