Stellar [XLM] Breaks 8-Month Downtrend—Can Bulls Smash Through $0.34?

After eight brutal months of bleeding, Stellar’s XLM finally shows signs of life—but traders aren’t popping champagne yet. The digital asset clawed back from its slump, yet the $0.34 resistance level looms like a Wall Street bonus hurdle.

Key drivers: Network upgrades and renewed institutional interest could fuel the rally—if Bitcoin doesn’t throw another tantrum. Meanwhile, retail investors eye the charts, wondering if this is the breakout or just another fakeout.

Bottom line: XLM’s momentum looks real, but in crypto, ’real’ lasts until the next whale dumps. Watch the order books—not the hype.

Source: X

According to Martinez, XLM has broken out of an Inverse Head and Shoulders pattern, which often signals a trend reversal. With Stellar retesting $0.24 as support, the right shoulder appears complete.

He now projects a rally toward $0.39—provided buyers maintain control.

Is Stellar ready to rally?

According to AMBCrypto’s analysis, Stellar is experiencing strong upward momentum amidst rising demand.

Looking at Stellar’s Relative Strength Index (RSI), it has surged to complete a bullish crossover over the past day. The altcoin’s RSI has risen to 66.45 while its MA remains at 54, signaling a higher buying pressure.

Therefore, buyers are currently dominating the market with the total displacement of sellers.

Source: TradingView

This buying pressure has strengthened the altcoin’s price upward momentum.

On top of that, MACD surged to 30.43 after a bullish crossover two days ago, confirming market strength.

These buyers have especially dominated the futures market, with Taker Buy dominant in the Futures Taker CVD. This suggests that buyers are mostly getting into the market to take strategic positions, awaiting the next move.

On weekly timeframes, sellers are absent as per the futures CVD.

Source: CryptoQuant

Futures traders go long as sentiment shifts

When we look at the Funding Rates Aggregated by Exchange, it has turned positive across all exchanges over the past day.

A turn to positive territory indicates a shift in market sentiment, with investors getting into the market to take long positions. Thus, long positions are currently dominating the market.

Therefore, the buyers dominating the futures market, as observed above, are mostly going long, reflecting strong bullish sentiment among Stellar buyers.

Source: Coinalyze

Simply put, Stellar is currently experiencing strong bullish sentiment.

The growing bullishness has seen the upward momentum strengthen as buyers retake the market. These conditions position XLM for major gains.

If prevailing sentiment holds, Stellar will find the next significant resistance level around $0.34.

However, having said that, if short-term holders use this rally to exit breakeven positions, XLM could drop to $0.281 or even $0.25.

Still, with momentum and structure on the bulls’ side, the upside case remains strong, at least for now.