Stellar XLM in Focus: Can the recovery reach $0.24?

Stellar (XLM) currently trades at $0.23 after the price action came under slight pressure in recent days. A detailed technical analysis indicates an exciting scenario for the next 7-14 days: the price could seek a recovery from the current support at $0.20 up to $0.24 – representing a potential 10-20% gain from today’s level.

Why it becomes interesting now: The technical signals

The indicators give mixed but promising hints. The RSI is at 36.43 and approaching oversold conditions – a classic setup for recovery attempts. The MACD histogram shows initial positive movements with a value of 0.0002, meaning selling pressure is gradually easing.

Particularly interesting is XLM’s position within the Bollinger Bands: With a %B value of 0.1375, XLM sits near the lower band support at $0.20. This is typically the point where mean-reversion movements occur – prices then tend to move upward toward the middle line at $0.22. The stochastic (%K: 22.74, %D: 21.63) confirms oversold conditions without falling into extreme extremes – meaning there is still room for organic growth.

The optimistic scenario

In a bullish case, XLM would show a structured recovery primarily targeting $0.24. This level is no random choice – it coincides with the 50-day SMA (Simple Moving Average), an established technical barrier. A breakout above could extend the rally to $0.30, where strong resistance awaits.

Prerequisites for this: trading volume should stay above the current daily average of $8.3 million, and RSI should cross above the 50 mark. Another positive trigger would be reclaiming the 20-day SMA at $0.22 – which would shift the short-term trend from bearish to neutral and provide a solid base for further gains.

Don’t forget the risk side

The main risk lies in a break below $0.20. This point is both immediate and strong support – falling below it risks further decline. The 52-week lows are also at $0.20; a breakthrough could target psychological support zones at $0.15-$0.18.

However: the recent 24-hour trading range between $0.20-$0.21 appears more consolidative than panicky selling. Volume patterns will be crucial to assess whether the current support holds.

How the trading strategy could look

For traders with cautious risk management, a selective accumulation strategy is currently advisable. The recommended entry zone is between $0.20-$0.205 – right at the current support cluster.

Specific levels:

• Stop-Loss: $0.195 (about 2.5% below key support)
• First target: $0.22 (SMA 20 resistance)
• Final target: $0.24 (SMA 50 resistance)

Position size should remain conservative – after all, XLM is not far from 52-week lows, and the overall trend is neutral. A dollar-cost averaging approach, adding on dips around $0.20, offers optimal risk management while maintaining an upward exposure.

What matters: The confirmation indicators

The following developments would support the bullish scenario:

• RSI climbs above 40 (Momentum gains strength)
• MACD line crosses above the signal line (classic bullish crossover)
• Volume increases on price moves above $0.21 (Buyers enter the market)

Conclusion: Moderate confidence for the next 1-2 weeks

The XLM price forecast for the next 7-14 days targets $0.22-$0.24, representing gains of 10-20% from current levels. This assessment is based on the support at $0.20 holding and early momentum indicators stabilizing or improving.

The timeframe for initial targets is 1-2 weeks; monthly targets depend on broader market conditions and XLM’s ability to reclaim moving averages. If $0.20 does not hold, a reassessment would be necessary, and deeper support zones would come into play.