Stellar Price Forecast: XLM nears key support as bears test resilience

Stellar (XLM) price has been under selling pressure after facing rejection from the upper boundary of the falling wedge pattern on September 18. The rejection triggered an 11.5% correction, dragging the token down to the $0.354 region by Friday.

Currently, XLM is approaching a crucial demand zone, with the 200-day Exponential Moving Average (EMA) at $0.34 acting as the first line of defense. This level is further reinforced by weekly support at $0.332, making it a decisive zone for bulls to defend. If buyers manage to absorb the selling pressure here, Stellar could rebound toward the upper wedge resistance near $0.3686, aligning with a potential short-term recovery setup.

The Relative Strength Index (RSI) on the daily timeframe holds at 38-39, well below the neutral 50 mark. This reflects the dominance of bearish momentum and the lack of immediate bullish conviction. For any recovery attempt to gain traction, the RSI must climb back above the neutral midpoint, signaling renewed demand strength.

On the downside, a failure to maintain support between $0.340 and $0.332 would likely expose Stellar to deeper losses. In such a case, sellers could push XLM toward the July 11 low of $0.297, a level that previously acted as a springboard for recovery.

In summary, XLM sits at a pivotal crossroads:

Bullish case: Hold $0.340–$0.332 support and target $0.3686.

Bearish case: Break below $0.332, extending losses to $0.28-29.

Traders should closely monitor how Stellar reacts to the confluence of the 200-day EMA and weekly support, as this will likely dictate its next directional move.
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