XLM Price Analysis: Stellar Eyes Bottom Formation Near $0.21 Support Zone

Stellar (XLM) is getting close to an important technical zone after weeks of decline against the dollar. The price is showing signs it might be ready to stabilize. Market analysts are watching the chart closely, with some suggesting the bottom could already be in—or at least very near—even if XLM doesn’t quite touch the 0.18 level. Right now, selling pressure is noticeably slowing down as the price squeezes into a tighter range near long-term support.

Looking at the daily chart, you can see a pretty complex corrective pattern marked by several trendlines and Fibonacci retracement levels. XLM is currently hovering around 0.21–0.22, which is actually a pretty significant area where multiple technical markers line up. There’s a highlighted zone on the chart showing where price could potentially bounce or at least pause before making its next big move. As one analyst noted, “the bottom is either in or very close, even if the price does not necessarily reach the 0.18 level.”

What’s interesting is how price behavior has changed recently. After those earlier sharp drops, XLM has moved into a much tighter trading range. Volatility has cooled off, and those descending trendlines have started to flatten out—classic signs that sellers are losing steam. The overall structure looks more corrective than impulsive at this point, which supports the idea that Stellar might be building a base rather than preparing for another leg down.

This setup matters beyond just XLM itself. If Stellar can hold above current support and stabilize here, it could shift sentiment across similar altcoins in the market. Staying above this level would suggest downside risk is getting more limited. On the flip side, if this support breaks cleanly, we’d likely see price head toward deeper retracement zones. Either way, Stellar’s next move from this consolidation area should give us some clear signals about where the broader crypto market might be headed.

My Take: The chart structure looks promising for a potential reversal, but patience is key here. XLM needs to hold above 0.21 convincingly before bulls can really take control. The flattening trendlines and reduced volatility are encouraging signs.

Source: Market Eagle