Stellar has drawn attention after a breakout from a falling wedge pattern, signaling a possible shift from bearish to bullish momentum.

Analyst highlighted that the 8-hour chart shows the asset pushing above the wedge’s upper boundary, an event that often confirms the end of a downtrend. This breakout, paired with price action climbing over the 100-period moving average, strengthens the case for a sustained rally in the near term.

Wedge Breakout and Key Targets

The wedge breakout reflects buyers regaining control after weeks of gradual downward pressure. Stellar has also broken through a descending resistance line, marking the end of prolonged selling.

The $0.34 support zone held firm during the move, creating a base for the upward shift. Stable trading volumes back the validity of the breakout, while the RSI remains in an uptrend but below overbought levels, suggesting further upside potential without overstretching.

Source: X

Jonathan Carter’s analysis points to price targets of $0.43, $0.45, $0.47, and $0.50, which align with historical resistance levels and high-volume trading zones on the chart. Each target marks areas where price acceptance was previously established, making them logical checkpoints for the rally. The alignment of technical structure, moving averages, and volume support positions the token for a healthy continuation, provided broader market conditions remain stable.

Market Data Shows Growing Confidence

At the time of writing, xlm trades at $0.39, reflecting a 0.96% daily gain, according to BraveNewCoin data. The token holds a market capitalization of $12.48 billion, supported by an active 24-hour trading volume of $336 million. This level of liquidity underpins the current rally and signals strong engagement from traders.

Source: BraveNewCoin

With an available supply of 31.78 billion tokens, he coin remains a top-20 cryptocurrency by market cap, demonstrating its resilience and continued relevance in the digital asset landscape. The stable supply base and steady daily activity strengthen the token’s position as an attractive option for investors seeking established altcoins.

Market sentiment has tilted positive as the asset consolidates above $0.39, suggesting that buyers are defending higher levels. Some forecasts now see near-term upside toward the $0.40–$0.43 range, with the potential for additional gains if broader market momentum improves.

Technical Indicators Support Cautious Optimism

Additionally, the daily TradingView chart shows Stellar closing around $0.4040, extending its rebound from the $0.35 lows. Price action is trending upward, though a key resistance looms at $0.52, a level that will require strong volume to overcome. The recent rally signals improving sentiment as buyers push the recovery phase further.

Source: TradingView

The Chaikin Money Flow (CMF) is slightly negative at -0.03, pointing to cautious capital flows. While not strongly bearish, it does indicate that inflows are not yet dominant, highlighting the need for stronger participation to confirm sustainability.

Meanwhile, the MACD shows encouraging signs. The MACD line (-0.0038) has crossed above the signal line (-0.0094), with the histogram turning positive at 0.0056. This bullish crossover suggests growing momentum, though still in the early phase of development. If confirmed with rising volume, it could lay the groundwork for the crypto to challenge higher resistance levels in the coming weeks.