XLM Price Rally: Temporary Pause or Game Over?

Stellar's XLM hit turbulence after a blistering rally—but this might just be the cooldown phase before the next leg up.

Bullish fundamentals remain intact

Despite the recent pullback, on-chain metrics show whales accumulating at these levels. The protocol's cross-border payment solutions keep gaining traction among institutional players.

Technical outlook: Breather or breakdown?

Key support levels held during last week's volatility, though some traders are taking profits after the 150% YTD gain. (Because why actually use crypto for payments when you can just trade the volatility, right?)

Market structure suggests this is healthy consolidation rather than distribution. The real test comes if Bitcoin decides to throw another tantrum.

XLM short-term price prediction

Despite the current 10% pullback, the overall structure remains bullish as the price hasn’t broken below the $0.33 breakout zone, a key level that now serves as support after acting as resistance for several months. As long as XLM price holds above this level, the breakout remains intact, and the recent dip is more likely a healthy correction within a larger uptrend rather than a reversal.

Looking ahead, sustained buying pressure could push XLM price to reclaim $0.52 and potentially advance toward the January peak of $0.64, which WOULD be a 52% gain from the current level.

Technical indicators support a cautiously bullish outlook, with the RSI cooling off from overbought levels to 57, and the price holding above the 20-day EMA, which is acting as support during the current pullback. However, a break below this EMA, which the price is currently testing, increases the likelihood of a deeper retracement.