Stellar's XLM token jumped more than 14% in the past 24 hours, climbing back above the midline of its long-term parallel channel and triggering a flurry of technical signals often associated with trend shifts. The move pushed the cryptocurrency past $0.165, a level that had capped recent attempts to rally.
Breakout on the 4-hour chart
On the 4-hour time frame, XLM broke above a descending trendline with a volume spike and a large green candle. The relative strength index (RSI) on that chart sits near 75, a zone considered overbought, which suggests the short-term rally might be stretched. Still, the MACD histogram is printing rising green bars, indicating that bullish momentum is expanding for now.
Daily chart reclaims channel midline
The daily chart shows XLM bounced from $0.14 support and has printed two consecutive green candles on strong volume. The daily RSI broke its own descending resistance trendline, a signal that momentum is strengthening. The Bollinger Band Width Percentile is at extreme highs — a pattern that has historically coincided with the early stages of a trend expansion.
Key levels to watch
Next resistance sits at $0.18, the upper band of the channel, followed by $0.20. A major supply zone near $0.25 could become a battleground if the rally extends. On the downside, a close below the channel midline around $0.165 would invalidate the bullish setup and put the $0.14 support back in play.
Weekly chart hints at bigger targets
Zooming out to the weekly chart, XLM is trading on horizontal support that dates back to 2021, anchored by consolidation from 2022 to 2024. Trader PacquianPrime pointed out a textbook reversal pattern — a structure break, retest, and liquidity sweep — and said the weekly chart shows a path to $0.60. The upside band between $0.50 and $0.60 is a prior breakdown area from late 2024, making it a likely liquidity target.
XLM traded near $0.169 late Tuesday, giving it a market cap above $5.6 billion. For now, traders are watching whether the price can hold above $0.165 and build on the momentum before the overbought RSI forces a pullback.
