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Stellar (XLM) Nears Make-or-Break Moment as Price Coils Tight—Brace for Volatility

Stellar (XLM) Nears Make-or-Break Moment as Price Coils Tight—Brace for Volatility

Author:
Tronweekly
Published:
2025-05-29 21:36:33
11
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XLM’s price compression hits a critical inflection point—will institutional FOMO or crypto’s infamous ’buy the rumor, sell the news’ mentality dominate?

Technical traders are eyeing the tightening Bollinger Bands like hawks. Meanwhile, retail investors are too busy chasing the next memecoin to notice the sleeping giant.

One thing’s certain: when this spring snaps, it’ll move fast. Just don’t expect Wall Street to care until after the fact—as usual.

Stellar

  • Stellar (XLM) is trading near $0.285 with reduced volatility, indicating a potential breakout.
  • Bollinger Bands are tightening, often a sign of an upcoming sharp price move.
  • Key resistance sits at $0.293, while strong support holds near $0.277.
  • RSI and MACD show neutral momentum, keeping both bullish and bearish scenarios in play.

Stellar (XLM) is currently trading NEAR $0.285, maintaining a tight range as it moves between key support and resistance levels. After several failed attempts to break higher earlier this month, XLM is now showing signs of reduced volatility, suggesting that a decisive move could be on the horizon.

XLM 7D graph coinmarketcap 1

Source: CoinMarketcap

Stellar Price Squeeze Hints at Volatile Move Ahead

Technical analysis on the 4-hour chart shows the price hovering just below the 9-period Exponential Moving Average (EMA) and the 9-period Triple Exponential Moving Average (TEMA), both converging around $0.285. Bollinger Bands are narrowing, with the upper band at $0.29187 and the lower band at $0.28128. This squeeze pattern often indicates that the market is preparing for a larger move, either to the upside or downside.

Key resistance is located around $0.29304, a level that has acted as a ceiling for price action over the past several weeks. If bulls manage to break above this zone, the next target could be $0.33463, which marks a previous high from early May. On the downside, strong support has held near $0.27926 and $0.27713, forming a critical floor for price stability. These levels have been tested several times, proving their significance in the current market structure.

XLMUSD 2025 05 29 03 07 50

Stellar (XLM) Price Squeeze Signals Imminent Move, Breakout or Breakdown? 5

Momentum indicators are reflecting a neutral stance. The Relative Strength Index (RSI 14) is currently at 48.58, showing no clear dominance from buyers or sellers. Meanwhile, the Moving Average Convergence Divergence (MACD) is hinting at a possible bullish crossover. The MACD line sits just above the signal line at 0.00003, although the histogram remains flat, suggesting limited momentum.

XLMUSD 2025 05 29 02 59 30

Stellar (XLM) Price Squeeze Signals Imminent Move, Breakout or Breakdown? 6

As XLM continues to trade within this narrow range, traders are watching closely for a breakout. A MOVE above $0.293 with increased volume could trigger a rally toward the $0.33–$0.34 area. On the flip side, a breakdown below $0.277 might lead to a deeper correction, with potential downside targets near $0.26.

With volatility low and price action coiling, stellar (XLM) appears to be in a classic consolidation phase. Market participants should be prepared for a sharp move once price escapes the current range.

Related Reading | XRP Leads with 83% Chance of Spot ETF Approval, Says Polymarket

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