Stellar is drawing attention as technical and on-chain data align around a potential bullish setup. After rebounding from recent lows, the asset is stabilizing near $0.39 while analysts highlight the importance of defending key support levels.
Market data shows strong participation despite recent dips, keeping momentum alive for a possible breakout above $0.40 and toward higher resistance zones.
Fibonacci Levels Define Critical Support Zone
In a recent chart shared on X, Stellar was shown breaking out of a descending trendline that has capped price rallies for months. The analysis outlines the market now positioned in a wave (4) correction following wave (3), with Fibonacci retracement levels between $0.387 and $0.374 becoming pivotal support zones. Buyers are actively defending this range, signaling confidence in maintaining the structure needed for continuation higher.
Source: X
If these supports hold, the setup indicates potential for a wave-(5) rally targeting $0.44 to $0.46. However, any decisive move below $0.374 could shift momentum, opening the door for a deeper retracement toward $0.344. This highlights the importance of market behavior in the coming sessions as the asset navigates this critical price pocket.
The broader Elliott Wave structure remains intact as long as key supports are respected. This framework suggests that the asset could soon confirm a breakout cycle, turning current consolidation into the launchpad for its next major upward phase.
Market Data Points to Steady Accumulation
According to BraveNewcoin, Stellar was trading around $0.39 at press time, reflecting a 1.25% decline in the last 24 hours. Its market capitalization stood at roughly $11 billion, with daily trading volume recorded at $220 million. These figures indicate strong liquidity despite the minor dip, underscoring that market activity remains healthy.
Source: TradingView
The chart data highlights the token’s path since rebounding from the $0.20 region earlier this year, which fueled a rally to $0.52 in July. Since then, the asset has moved into a corrective consolidation phase but continues to form higher lows, which signals resilience even amid selling pressure. The $0.35 to $0.40 range has now formed a significant base for further moves.
Technical Indicators Signal Possible Breakout
On the other hand, the TradingView daily chart reflects signs of recovery as technical indicators begin to lean positive. The Chaikin Money Flow (CMF) is slightly negative at -0.04, pointing to modest capital outflow, but the MACD histogram has turned positive at 0.0045, suggesting an early momentum shift back toward buyers.
These mixed signals highlight a transitional phase where market confirmation is still developing.
Source: TradingView
Candlestick formations further reinforce the trend, with the token showing a steady rebound from recent lows while defending its higher-low pattern. This structure indicates that, despite short-term corrections, the underlying bias remains constructive. Volume trends around $220 million also add weight to the argument that buyer activity continues to support the market.
The immediate resistance sits near $0.40–$0.405, which traders are closely watching as the breakout trigger. Clearing this level with sufficient volume would likely pave the way for a push toward $0.45, while downside support remains anchored near $0.37. The balance between these two levels will decide whether Stellar can extend its recovery into the final quarter of the year.
