Stellar (XLM) has broken out of a multi-year sideways trend, soaring 95% in just one week and securing its place as one of the top-performing cryptocurrencies.
While the rally is currently cooling off in a consolidation phase, signs suggest this may be the start, not the peak.
XLM Downtrend Broken, Momentum Unleashed
Stellar (XLM) smashed through its multi-month downtrend line on July 10, triggering a vertical move that pushed the price to $0.52 levels last seen in January.
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The breakout also confirms the start of the third Elliott Wave, a historically powerful impulse wave, following a deep correction that began in December 2024. This reversal occurred after a key bounce from below the 0.618 Fibonacci level, which is often viewed as a springboard for strong recoveries.
Source: TradingView
XLM’s breather comes just as early signs of an altseason begin to surface. With Bitcoin dominance sliding, investors are rotating into altcoins. XLM, in particular, is holding its ground around $0.47, consolidating gains and setting the stage for a potential next leg up.
Mini Golden Cross Signals Bullish Momentum
Zooming in on the daily timeframe, an interesting technical development is unfolding on Stellar’s chart.
Here, the 20-day moving average has just crossed above the 200-day moving average, forming what’s known as a Mini Golden Cross .
While this signal is considered less powerful than the classic 50/200 Golden Cross, it still points to strengthening short-term momentum and a potentially bullish setup.
Source: Tradingview
Critical Levels to Watch
To sustain momentum, XLM must turn the $0.51–$0.55 resistance zone into a support level.
For bulls to maintain strong control, a 4-hour candle close above the psychological $0.50 mark is crucial.
If this fails, a correction back to the recent low at $0.425 is likely. If that level breaks, it could trigger a deeper bearish correction.
Why This Matters
XLM has been stuck in consolidation for over five years since its peak in 2018. There have been two major breakout attempts, one in 2021 and another in 2024. It’s now making a third attempt. Historically, the more a resistance level is tested, the weaker it becomes. That could pave the way for a significant breakout if momentum continues to build.
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People Also Ask:
Stellar (XLM) is a blockchain-based platform designed to facilitate fast, low-cost cross-border payments and asset transfers. Its native token, Lumens (XLM), is used to pay transaction fees and facilitate operations on the network.
Like all cryptocurrencies, XLM carries risk and volatility. Investors should conduct thorough research, consider market trends, and evaluate their risk tolerance before investing.
Stellar uses a unique consensus protocol called the Stellar Consensus Protocol (SCP), which offers security and decentralization while enabling fast transaction finality.
Stellar’s transaction fees are very low, usually a fraction of a cent, making it practical for microtransactions
