Stellar Price Update: Testing $0.50 Target Near 200-Day Moving Average

• Stellar is currently moving through a technically important zone on the daily timeframe. The chart shows XLM pressing against the descending trendline that has capped price action for months, while the market trades close to the 200-day moving average, a key long-term technical reference.

• The descending triangle visible on the chart is defined by a series of lower highs and a relatively stable support zone near the $0.23–$0.25 area. Price recently rebounded from this support and has continued to grind higher, bringing Stellar back toward the upper boundary of the pattern. This structure reflects a prolonged period of compression, where sellers gradually reduce price ceilings while buyers continue to defend the same demand area.

• The 200-day moving average sits just above current price and overlaps with the descending resistance line. This confluence makes the zone especially important. Acceptance above the 200-day moving average would suggest that downside pressure is weakening, while rejection at this level would likely keep XLM trading within the broader consolidation range.

Continuation above the 200-day moving average would be a key condition for higher price levels, with the $0.50 region as a potential upside reference.

• The chart also highlights a clearly marked resistance zone above current price, indicating where supply has previously emerged. Broader context suggests that a sustained move beyond the descending triangle could expose higher price levels, with the $0.50 region highlighted as a potential upside reference.

• This setup matters because descending triangles often precede larger directional moves once resolved. Stellar’s ability or failure to hold above the 200-day moving average will likely define near-term momentum and shape market expectations for XLM as the consolidation phase approaches its later stages.

My Take: The $0.50 target represents a significant 100% gain from support levels, making this triangle breakout particularly compelling. However, the convergence of descending resistance with the 200-day MA creates a double barrier that XLM must clear decisively to avoid another rejection.

Source: Whales_Crypto_Trading