Stellar (XLM) Completes Long Corrective Structure and Enters Bullish Impulsive Phase

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

Stellar (XLM) has completed a long corrective structure and entered a bullish impulsive phase, recently topping near $0.33. However, the latest pullback might be suggesting the beginning of an ABC correction, with the current price action consolidating above a key trendline and Fibonacci support levels. This setup offers both short-term correction and mid-term continuation possibilities.

Stellar Price Analysis: Zooming In

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

After the breakout, Stellar completed a five-wave impulse, ultimately peaking just above the 0.236 Fib resistance at $0.334. The price action got rejected at this level, which then led to the initiation of the current pullback.

The 4-hour Relative Strength Index (RSI) also 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, which aligns with the wave (ii) ending point.

In summary, Stellar appears to have completed its initial five-wave advance, and this correction is a natural cooldown phase. A bounce from this area and reclaiming the 0.236 Fib resistance could resume the upward trajectory.

Stellar Price Prediction: Anticipating the Bounce

The 1-hour chart highlights 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 strong technical confluence for a potential reversal.

The RSI on the 1-hour time frame indicates that the oversold conditions are now 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 will remain intact. Following the resumption of the next impulsive wave, the targets will be toward $0.33 and later higher.

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

Key Levels to Watch