Stellar (XLM) Surges Toward $0.35 as Market Rally Fuels Breakout Hype

Stellar's XLM is making waves as bullish momentum pushes it toward a key $0.35 resistance level. Traders are piling in—because nothing says 'trust the process' like chasing a chart pattern.

Why the sudden surge? Market sentiment flipped bullish after XLM shattered its consolidation range. Now, the crowd's betting on a full-blown breakout—despite half of them not knowing what Stellar actually does.

Technical indicators scream upside: RSI holding strong, volume spiking, and that sweet, sweet FOMO kicking in. Even the whales are nibbling—probably while shorting it on another exchange.

Word to the wise: If XLM clears $0.35, things could get wild. If not? Well, there’s always another 'next big thing' in crypto.

XLM Breaks Above $0.27, Turns Resistance Into Support

In a significant technical move, Stellar’s XLM broke above the $0.27 level, which had served as a strong resistance for weeks. This level has now flipped into solid support, creating a more stable base for potential price gains. At the time of writing, XLM is trading above $0.30 and appears to be building strength for a MOVE toward the next resistance level at $0.35.

The price movement has also formed a bullish cup-and-handle pattern on the 4-hour chart. This is a classic chart setup often seen at the start of new upward trends. The formation signals a potential continuation of upward price action, especially when paired with strong market support.

Technical Indicators Show Strong Support for Bull Run

XLM has crossed above key Simple Moving Averages (SMAs)—the 20, 50, 100, and 200-period lines. These moving averages, often used by traders to identify trends and potential reversal points, are now acting as support levels for the current price. Holding above all four SMAs adds confidence to the bullish outlook.

Short-term resistance lies at $0.35, but if momentum continues, further upside targets include $0.45, $0.50, and $0.55. On the downside, support remains strong at $0.27, with further support at $0.254, $0.251, and $0.246. As long as XLM stays above these levels and maintains current momentum, the outlook remains positive.

Derivatives Market Backs the Rally

Stellar’s bullish breakout is not just limited to spot trading. Data from Coinglass reveals strong confirmation from the derivatives market. Open interest—the total value of active futures contracts—has climbed to $253.45 million, while trading volume surged to $927.62 million. These metrics indicate increased participation from both retail and institutional traders.

Rising open interest and volume often signal sustained interest and confidence in price movements. In XLM’s case, this surge confirms that the market is actively backing the breakout and expecting further upside.

Can XLM Revisit Early 2025 Highs?

XLM’s recent move has lifted market sentiment, with many traders and analysts now looking to higher targets. If current momentum holds, stellar may retest price levels seen during its peak in the first half of 2025. Back then, strong institutional and retail interest pushed prices to multi-month highs, and current patterns suggest a possible return to those levels.

The combination of:

• a bullish cup-and-handle formation,

• a successful breakout above $0.27,

• support from all major SMAs,

• and rising derivatives market activity

…suggests that Stellar may be entering a new uptrend.

Why Stellar’s Rally Matters Now

Stellar has long been seen as a practical blockchain project focused on cross-border payments and financial inclusion. Unlike many projects driven by hype, Stellar’s use cases have kept it relevant, especially among enterprise and fintech players. The current rally could bring renewed attention to XLM’s fundamentals, including its low-cost, high-speed transactions.

This bullish move also aligns with a broader trend in the crypto market, where altcoins are showing strength following Bitcoin’s push past $118,000. Ethereum, XRP, and Cardano have all seen increased demand, and Stellar may now be joining this wave of rising altcoins.

What’s Next for XLM?

The next few days will be crucial for XLM. Holding above $0.30 and breaking through $0.35 could confirm the continuation of this bullish trend. If volume and open interest continue to rise, and no major resistance zones interrupt the trend, XLM could make a sustained push toward $0.45 and beyond.

On the other hand, any dip below the $0.27 level may signal a weakening of momentum. However, given the current technical and market indicators, this scenario appears less likely unless broader market conditions turn bearish.