Key Takeaways:
- XLM surged more than 17% to reclaim its long-term parallel channel midline
- Four-hour chart shows a clean break above a descending trendline from April
- Weekly structure points to a potential path toward $0.60, traders say
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Stellar jumps 14% as XLM reclaims long-term channel midline
XLM rose 17.6% to $0.1741, reclaiming the midline of its long-term parallel channel as buyers returned to the Stellar network on May 28.
"XLM just painted the path to $0.60. Weekly chart looking clean. Broke structure, retested, and now the liquidity sweep above is calling," PacquianPrime, a pseudonymous trader, said on X.
The four-hour chart shows a clean break above a descending trendline that ran from the April 21 swing high near $0.185. The move came on a sharp volume spike, with the largest green candle of the recent range pushing price back above $0.165. The Relative Strength Index reads close to 75, signaling the rally may be short-term extended, while the MACD histogram prints rising green bars, indicating expanding bullish momentum. A pullback into the $0.165 area would give buyers a more measured entry zone, according to CoinGecko data.
The next resistance sits at $0.18, the upper band of the channel. A clean break opens the path to $0.20, with the heavy supply zone near $0.25 as the next major target. A close back below the midline near $0.165 would invalidate the immediate setup and put the $0.14-to-$0.15 support band back in play.
Daily chart adds structural weight
The daily timeframe reinforces the breakout. XLM reclaimed the midline of a parallel channel that has framed price action since early February, following a strong bounce from the $0.14 support band. Two consecutive green candles confirm the shift in tone, with yesterday's session adding roughly 11%. The RSI on the daily chart broke its own descending resistance trendline, pointing to strengthening momentum rather than fading interest. The Bollinger Band Width Percentile reads at extreme highs, which often coincides with the early stages of trend expansion, according to technical analysis data.
Weekly outlook targets $0.60
Stepping out to the weekly chart widens the lens. XLM trades on a horizontal support that dates back to 2021, the same level that anchored the consolidation between 2022 and 2024. The current bounce mirrors the structure that preceded earlier rallies on Stellar. The upside band drawn on the weekly chart sits between $0.50 and $0.60, marking the prior breakdown area from late 2024. That level becomes a likely magnet for a longer-term liquidity grab, though the thesis depends on the current weekly support holding through any short-term retracement.
Stellar's market capitalization now stands above $5.6 billion, according to CoinGecko. The convergence of signals across the three timeframes leaves XLM with a clear playbook: bulls keep control while price holds above the channel midline near $0.165, and $0.18 stands as the first immediate test. A failure to defend the $0.14 support would shift the story back to range-bound trading.
This article is for informational purposes only and does not constitute investment advice.
