Stellar coin is attempting to regain traction after recent weakness, with buyers stepping in near a key support level.
As the token hovers around the lower boundary of its bullish flag structure, market sentiment hints at a possible rebound if momentum strengthens further.
Bulls Hold Ground Near Flag Support, Analyst Warns of Breakout Potential
In a recent X post, analyst Butterfly highlighted that “the coin is attempting to rebound from the lower border of the bullish flag on the 3D timeframe.” The analyst emphasized that bulls are maintaining control near this crucial zone, indicating rising buying pressure and renewed optimism among market participants. The setup suggests that Stellar may be in the early stages of a technical recovery, as historical patterns within similar flag formations often precede strong upward movements once momentum shifts decisively.
Source: X
According to Butterfly, this area acts as a short-term pivot where bullish continuation could quickly follow, especially if price action confirms a breakout above upper channel resistance. Traders are closely watching volume and candlestick structure to validate whether the current stabilization is an accumulation or a pause before another leg down. The analyst cautioned that losing this flag boundary could weaken the short-term structure, while a confirmed rebound could send the token soaring toward previous highs.
Market Metrics Show Trading at $0.28 Amid -8.75% Decline
On the other hand, Data from BraveNewCoin shows that Stellar is currently priced at $0.28, marking an 8.75% drop in the last 24 hours. The network holds a market capitalization of $8.91 billion and a 24-hour trading volume of $321 million, ranking it 23rd by market cap among cryptocurrencies. The circulating supply stands at 32.06 billion tokens, with the asset experiencing moderate liquidity despite short-term volatility.
Source: BraveNewCoin
Market data also reveals that the $0.275–$0.285 range has become a critical price corridor, reflecting tight consolidation after recent sell-offs. This zone is being defended aggressively by buyers, as previous sessions showed consistent rebounds from sub-$0.27 levels. A sustained close above $0.29 could indicate renewed buying conviction and set the stage for a gradual climb back toward the $0.31 resistance area.
Technical Indicators Point to Oversold Conditions
At the time of writing, TradingView data shows XLM/USDT trading near $0.2783, slightly above the lower Bollinger Band ($0.2841) — a level often associated with oversold conditions. Despite this, momentum indicators remain subdued, suggesting that while downside pressure is easing, a definitive reversal has not yet formed. The Bollinger Bands are widening after a contraction phase, signaling potential volatility ahead.
Source: TradingView
The 20-day SMA (basis line), currently near $0.3106, represents a key resistance that must be reclaimed to validate a bullish shift. Meanwhile, the RSI sits at 30.73, underscoring proximity to oversold territory.
A rebound above its moving average (around 39.05) could confirm early recovery signals. Should the coin maintain support at $0.27, the structure would favor a short-term rebound toward $0.31–$0.33. However, failure to hold that level may expose the token to further losses toward $0.24–$0.22, aligning with the lower demand zone highlighted by technical analysts.
