Stellar (XLM) is currently trading at a crucial technical level as the cryptocurrency tests a multi-year ascending support line that has historically marked significant market bottoms. Technical analyst ChartNerd has described the ongoing movement as a “bullish reset,” highlighting the significance of this support level for XLM’s price outlook.
Ascending Support Line and Technical Structure
The long-term chart shows XLM near the final stage of a corrective pattern, which ChartNerd identifies as wave 5. This development follows a series of higher lows along a blue ascending trendline that has served as the backbone of XLM’s price structure for several years.
Price action around this trendline has proven pivotal in previous cycles. In 2020, 2023, and 2024, XLM rebounded from this level, setting the stage for substantial price expansions in the following months.
ChartNerd has indicated that the latest correction is approaching the average duration of earlier drawdowns, which exceeded 70%. This timing element adds weight to the idea that a turning point could be near if the trendline continues to hold.
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XLM recently swept its local lows and is forming what appears to be a double-bottom pattern at the rising support area. The trendline’s ability to hold this level is considered crucial; a decisive break below would weaken the case for a “bullish reset” and open up the potential for further downside.
Conversely, a strong bounce from the trendline could signal that sellers are losing momentum at a historically important juncture, potentially paving the way for the next market expansion.
XLM’s structure is dominated by the blue ascending support. While this line holds, the larger bullish pattern remains intact. If price reacts positively from here, buyers could regain control and initiate another multi-year move.
Mini dictionary: Double-bottom, a technical analysis pattern that signals a potential trend reversal after a decline, consisting of two consecutive lows at a similar level followed by a breakout above the resistance level between them.
Potential Upside and Path Forward
Looking ahead, ChartNerd has cited a 1.272 Fibonacci extension as a significant technical target. This extension points toward the $2.40 to $2.45 range, a price level that would represent substantial gains if the current trend holds and another expansion phase develops.
Stellar, operated by the Stellar Development Foundation, is an open-source blockchain network designed for fast and affordable cross-border payments. The asset’s market structure currently suggests a period of consolidation rather than an imminent breakout, which means investors may need patience as XLM navigates this pivotal level.
Volume confirmation and a momentum shift are being closely monitored by traders as signals of potential trend reversal. Until such confirmation appears, the ascending trendline remains both the main support and the linchpin of the broader technical thesis.
| Year | Event | Outcome |
|---|---|---|
| 2020 | Test of ascending support | Major price expansion followed |
| 2023 | Test of ascending support | Expansion phase initiated |
| 2024 | Current test underway | Market watching for potential repeat |
Whether $XLM can stage another rally from this familiar support depends on renewed buyer conviction, with chart history showing repeated recoveries from this key trendline in previous cycles.
The broader XLM market narrative hinges on whether the longstanding trendline can once again support a reversal and spark renewed upside, mirroring past expansions from this level.
