Stellar’s bullish flag hints at a breakout | Credit: Hameem Sarwar
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Key Takeaways
XLM has stabilized near $0.38, forming a solid base for buyers after weeks of weakness
XLM’s Weighted Sentiment jumped to 2.82, showing traders are turning optimistic
A bullish flag on the daily XLM’s price chart suggests a return of July-like performance.
Stellar (XLM) has been on the back foot since its explosive rally in July.
However, over the past few days, XLM’s price appears to have found a bottom. Early signs suggest the altcoin is beginning to regain some of its recent losses.
If this trend holds, September could bring more upside for Stellar, as buyers step back in and attempt to rebuild confidence around the cryptocurrency.
XLM Shows Resilience
On the 4-hour chart, XLM traded downward between Sept. 13 and 16, forming a series of higher and lower lows that compressed price action.
As of this writing, however, the altcoin has broken above the upper resistance trendline, signaling a potential shift in momentum.
Supporting this move, the green line of the Supertrend indicator has flipped below XLM’s price, reinforcing a bullish bias in the short term.
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A closer look at the chart shows that the Moving Average Convergence Divergence (MACD) has formed a bullish crossover, further strengthening the case for upward momentum.
If this setup holds, XLM’s price could break out toward the next resistance at $0.42, potentially extending its recovery from the recent pullback.
Alongside the price rebound, XLM’s Weighted Sentiment has climbed into positive territory at 2.82. This metric measures the balance of optimistic vs. pessimistic commentary across social channels.
When traders feel optimistic, they are more likely to hold or accumulate, reducing selling pressure. At the same time, sidelined investors may decide to enter, fueling demand.
For XLM’s price, the current sentiment reading supports the bullish case by signaling that crowd psychology aligns with the technical indicators like the MACD crossover and support at $0.38.
If this optimism continues, it could help propel the Stellar coin toward its next resistance at $0.42 — and potentially beyond.
XLM Price Analysis: Breakout Ahead
At press time, the daily chart shows XLM forming a bullish flag, a continuation pattern that precedes another upward move.
The altcoin is on the verge of breaking above the flag’s upper trendline, confirming the breakout.
Adding weight to this setup, the Chaikin Money Flow (CMF) remains above the zero line, signaling that capital inflows are outpacing outflows and buyers are maintaining control.
If current momentum holds, XLM could break through resistance at $0.42. A decisive move above this level may trigger a rally toward $0.64, especially if buying pressure intensifies.
On the flip side, if bears defend the $0.42 resistance and force a rejection, the bullish setup could be invalidated. In that scenario, XLM’s price may retrace toward $0.29, testing lower support levels.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
