Stellar (XLM) Eyes Short-Term Bounce Before Likely Deeper Correction Hits

Key Takeaways

• XLM started the ABC correction after a five-wave impulsive rise.
• $0.266–$0.251 zone is key correction support.
  
• Trend continuation depends on holding the $0.229 level.

Stellar (XLM) has completed a long corrective structure and entered a bullish impulsive phase, recently topping near $0.33. 

The latest pullback suggests the beginning of an ABC correction, with current price action consolidating above key trendline and Fibonacci support levels. 

This setup offers both short-term correction and mid-term continuation possibilities.

XLM Price Analysis

The 4-hour chart of XLM shows a clear breakout from a descending wedge structure on April 12, marking the end of a W-X-Y corrective structure. 

Then, XLM completed a five-wave impulse, peaking just above the 0.236 Fib resistance at $0.334.

The price action got rejected at this level, initiating the current pullback.

The 4-hour Relative Strength Index (RSI) confirmed a peak during the final wave (v), and the current drop aligns with the start of a corrective wave. 

The broader trend remains bullish, as long as XLM maintains a higher low structure above the $0.25 zone.

If that fails, the price may revisit the $0.229 support, aligning with the wave (ii) ending point.

In summary, XLM has likely completed its initial five-wave advance, and the current correction is a natural cooldown phase.

However, a bounce from this area and reclaiming the 0.236 resistance could resume the upward trajectory.

XLM Price Prediction

The 1-hour chart outlines the early stages of an ABC correction, with wave A appearing to have bottomed at $0.281 (0.382 Fib).

A potential wave B bounce is now developing, likely to encounter resistance at the $0.300–$0.310 range, which aligns with the 0.236 Fibonacci retracement and prior support turned resistance.

Following wave B, wave C could extend toward the 0.5–0.618 retracement zone, placing the most probable targets between $0.266 and $0.251.

Notably, $0.251 also aligns with the ascending trendline and marks the 0.618 retracement of the previous bullish impulse, offering a strong technical confluence for a potential reversal.

The RSI on the 1-hour time frame shows oversold conditions easing, suggesting a temporary rebound before the correction continues.

Momentum indicators favor a short-lived relief rally before sellers likely regain control.

If bulls manage to defend the $0.251 level and reverse higher, the macro bullish thesis remains intact. Following the resumption of the next impulsive wave, targets will be toward $0.33 and later higher.

However, if XLM breaks below $0.229 (0.786 Fib), it would signal structural weakness and invalidate the bullish wave count.

Key Levels to Watch

• Support Levels: $0.281, $0.266, $0.251, $0.229.
  
• Immediate Resistance: $0.306, $0.306, $0.331.
  
• Invalidation: Below $0.229 (ABC correction breakdown).