Stellar (XLM) surged more than 14% in the past 24 hours, reclaiming the midline of its long-term parallel channel with the cryptocurrency now trading near $0.169. According to technical analysis reports, the Layer 1 network has achieved a significant technical breakthrough, with the move following a strong bounce from the support band at $0.14. The price action represents a clean break above a descending trendline that had been in place since the April 21 swing high near $0.185, accompanied by a sharp volume spike that pushed price back above $0.165.
The Relative Strength Index (RSI) reads close to 75, sitting in overbought territory and suggesting the rally may be short-term extended, as reported by technical analysts. However, the Moving Average Convergence Divergence (MACD) histogram prints rising green bars, signaling expanding bullish momentum. The daily chart shows two consecutive green candles confirming the shift in tone, with yesterday's session adding roughly 11% and the current daily candle printing another tall body that lifts price back to the upper edge of the channel. The Bollinger Band Width Percentile (BBWP) reads at extreme highs, which often coincides with the early stages of trend expansion.
The next resistance sits at $0.18, the upper band of the channel, with a clean break opening the path to $0.20. According to technical analysis, a pullback into the $0.165 area would give buyers a more measured entry zone, while if sellers push the price below the channel midline, the support band at $0.14 to $0.15 becomes the next test. The heavy supply zone near $0.25 stands as the next major target, with a close back below the midline potentially invalidating the immediate setup and putting $0.14 back in play.
Stepping out to the weekly chart reveals XLM trades on a horizontal support that dates back to 2021, with the same level anchoring the consolidation between 2022 and 2024. As reported by technical analysts, the current bounce mirrors the structure that preceded earlier rallies on Stellar. The upside band drawn on the weekly chart sits between $0.50 and $0.60, marking the prior breakdown area from late 2024 and becoming a likely magnet for a longer-term liquidity grab. Trader PacquianPrime framed the setup as a textbook reversal pattern, stating that 'XLM just painted the path to $0.60' with the weekly chart looking clean and the breakout structure remaining intact.
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