Stellar (XLM) Eyes Breakout as Price Climbs Above $0.40

Stellar Lumens is drawing attention this week as its price action flirts with key resistance levels, hinting at the potential for a bullish breakout.

Recent chart analysis highlights the importance of the descending trendline that has capped price action for weeks, while fresh market data shows the crypto gaining momentum after holding strong above support.

With technical indicators signaling early signs of recovery, Stellar appears to be setting the stage for its next decisive move.

Breakout Path Highlights Key Fibonacci Levels

A recent chart view of Stellar against USDT underscores the ongoing battle between buyers and sellers around the descending resistance trendline. Price action has consistently been rejected at lower highs, but accumulation near the $0.36–$0.37 support area suggests that buyers are laying the groundwork for a potential shift in momentum.

Source: X

The projected breakout path outlines clear checkpoints based on Fibonacci retracement levels. A clean break above the $0.39–$0.40 barrier could open the door to higher levels, with resistance points at $0.41 (0.618 Fib), $0.44 (0.786 Fib), and the psychologically significant $0.50 mark. Each of these levels represents not only short-term hurdles but also milestones in restoring confidence after months of consolidation.

However, the bullish scenario depends heavily on volume and follow-through. Failure to sustain a breakout could see the asset revisiting its base near $0.36, while a deeper retracement toward $0.34 would challenge the bullish structure. The market now awaits confirmation of whether the recent resilience can evolve into a sustained uptrend.

Market Data Underscores Strong Daily Performance

As of the latest reading, Stellar is trading at $0.40, marking a sharp 10.93% gain in the last 24 hours. Its market capitalization has risen to $12.9 billion, firmly positioning it in the top 20 global cryptocurrencies.

Daily trading volume has also surged past $420 million, reflecting heightened interest and liquidity around the asset.

Source: BraveNewCoin

The coin’s circulating supply of 31.94 billion tokens highlights the scale of the network, long recognized for its focus on payments, cross-border settlements, and partnerships with institutions aiming to bridge traditional finance with blockchain solutions.

Technical Indicators Signal Gradual Recovery

On the daily chart, XLM is priced at $0.40001, holding gains after stabilizing above $0.39. Despite being well below its yearly high of $0.52, the token has managed to recover substantially from its yearly low of $0.21, underlining its resilience in volatile conditions.

Source: TradingView

The Chaikin Money Flow (CMF) stands at 0.01, a modestly positive reading suggesting mild buying pressure. While not strongly bullish, this value indicates that capital inflows are keeping pace with outflows, preventing sellers from regaining dominance. A sustained rise above zero would strengthen the outlook for accumulation.

Meanwhile, the MACD adds weight to the emerging bullish case. The histogram sits at 0.00295, with the MACD line at -0.00075 and the signal line at -0.0037. The narrowing spread and positive histogram suggest momentum is gradually shifting in favor of buyers. If the MACD line crosses above the signal line, it could confirm the start of a stronger upward move.