Is Stellar (XLM) Setting Up for Its Next Major Breakout? Here’s What the Charts Suggest

Stellar's infrastructure just got a major upgrade—and the market's starting to notice. Quietly building while other chains hype empty roadmaps, XLM's technical foundation is stronger than ever.

Network activity spikes

Transaction volumes jumped 40% last quarter. Developers are flocking to Stellar for cross-border settlements—actual use cases, not just NFT monkey business.

Liquidity stacking up

Key resistance levels are getting tested. Whales are accumulating, and the order book shows thinning sells above current prices. Classic breakout setup.

Institutional tailwinds

Central banks are experimenting with Stellar for CBDCs. Because nothing says 'adoption' like governments finally realizing blockchain beats printing money.

Will it blast past resistance or get stuck in another crypto promise cycle? The charts say momentum's building—but then again, so did every project that begged for retail buys while insiders dumped.

Price Moves Toward Demand Zone

Stellar (XLM) was trading at $0.36 at press time, with a 24-hour volume of $288 million. The token is little changed on the day but has fallen 7% over the past week.

Alpha crypto Signal noted that XLM is approaching a key support area.

“The rejection from the $0.45 resistance is playing out cleanly, and price action is now inching toward that key demand area at $0.32–$0.30,” the group said.

They added that this zone remains their focus for accumulation. The daily chart shows that XLM is under pressure after being rejected from $0.45. The asset is now heading toward the $0.32–$0.30 range, which has previously served as a base for rebounds.

#XLM Update:$XLM is gradually sliding closer to our entry zone as expected. The rejection from the $0.45 resistance is playing out cleanly, and price action is now inching toward that key demand area at $0.32–$0.30. This zone remains our area of interest for fresh accumulation,… https://t.co/mFQJ4tt64U pic.twitter.com/HzFsDMfeL6

— Alpha Crypto Signal (@alphacryptosign) September 2, 2025

Short-term trend indicators are positioned above current levels, with the EMA 9 at $0.37 and the SMA 50 at $0.41. If buyers defend the support, a rebound toward $0.50–$0.55 remains possible. A decisive break under $0.30, however, WOULD weaken this setup and point to further losses.

Trading volumes have cooled since July’s sharp rally, suggesting consolidation as the market waits for direction.

Long Liquidations on the Rise

Recent liquidation data shows that long positions are being squeezed as XLM moves lower. On September 2, long liquidations reached over $192,900 compared with $55,750 in short liquidations.

The largest share came from OKX, where $138,160 worth of long positions were closed. Binance recorded both long and short liquidations, while earlier in July, the trend was reversed, with shorts being liquidated as XLM rallied to nearly $0.50.

Meanwhile, the shift toward long liquidations mirrors the pullback from $0.45 and highlights the importance of the $0.32–$0.30 support range.

Upcoming Protocol Upgrade

Stellar’s next network update, Protocol 23, is scheduled for September 3. The upgrade will introduce changes to the system, though its immediate effect on market behavior is uncertain.

With price nearing a crucial support level and the upgrade on the horizon, traders are watching to see if XLM can stabilize and set up for another breakout attempt.