Key Takeaways
- XLM started the ABC correction after a five-wave impulsive rise.
- $0.266–$0.251 zone is key correction support.
- Trend continuation depends on holding the $0.229 level.
Stellar (XLM) has completed a long corrective structure and entered a bullish impulsive phase, recently topping near $0.33.
The latest pullback suggests the beginning of an ABC correction, with current price action consolidating above key trendline and Fibonacci support levels.
This setup offers both short-term correction and mid-term continuation possibilities.
XLM Price Analysis
The 4-hour chart of XLM shows a clear breakout from a descending wedge structure on April 12, marking the end of a W-X-Y corrective structure.
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Then, XLM completed a five-wave impulse, peaking just above the 0.236 Fib resistance at $0.334.
The price action got rejected at this level, initiating the current pullback.
The 4-hour Relative Strength Index (RSI) confirmed a peak during the final wave (v), and the current drop aligns with the start of a corrective wave.
The broader trend remains bullish, as long as XLM maintains a higher low structure above the $0.25 zone.
If that fails, the price may revisit the $0.229 support, aligning with the wave (ii) ending point.
In summary, XLM has likely completed its initial five-wave advance, and the current correction is a natural cooldown phase.
However, a bounce from this area and reclaiming the 0.236 resistance could resume the upward trajectory.
XLM Price Prediction
The 1-hour chart outlines the early stages of an ABC correction, with wave A appearing to have bottomed at $0.281 (0.382 Fib).
A potential wave B bounce is now developing, likely to encounter resistance at the $0.300–$0.310 range, which aligns with the 0.236 Fibonacci retracement and prior support turned resistance.
Following wave B, wave C could extend toward the 0.5–0.618 retracement zone, placing the most probable targets between $0.266 and $0.251.
Notably, $0.251 also aligns with the ascending trendline and marks the 0.618 retracement of the previous bullish impulse, offering a strong technical confluence for a potential reversal.
The RSI on the 1-hour time frame shows oversold conditions easing, suggesting a temporary rebound before the correction continues.
Momentum indicators favor a short-lived relief rally before sellers likely regain control.
If bulls manage to defend the $0.251 level and reverse higher, the macro bullish thesis remains intact. Following the resumption of the next impulsive wave, targets will be toward $0.33 and later higher.
However, if XLM breaks below $0.229 (0.786 Fib), it would signal structural weakness and invalidate the bullish wave count.
Key Levels to Watch
- Support Levels: $0.281, $0.266, $0.251, $0.229.
- Immediate Resistance: $0.306, $0.306, $0.331.
- Invalidation: Below $0.229 (ABC correction breakdown).
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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