Stellar Lumens has officially broken its downtrend with a bullish engulfing candle above $0.32. Price now approaches high time frame resistance at $0.42, where a short-term pullback may occur.
Stellar (XLM) is experiencing an impulsive bullish rally after decisively breaking a major resistance level at $0.32, a move that officially marks a market structure shift. For weeks, Stellar had been trapped in a bearish pattern of lower highs and lower lows.
That trend is now broken following the formation of a bullish engulfing candle and the establishment of a confirmed higher high, suggesting a transition into a new bullish phase. However, with price now nearing a critical resistance zone at $0.42, a short-term pullback may be healthy and expected.
Key technical points
- Major Breakout at $0.32: Bullish engulfing candle confirms trend reversal and structure break.
- Higher High Established: Official end to bearish trend with momentum shifting bullish.
- Next Resistance at $0.42: High time frame level in confluence with VWAP, likely to cause reaction.
The recent rally in XLM comes after an extended bearish cycle where price was consistently posting lower lows and lower highs. That trend was decisively invalidated when price surged through the $0.32 resistance, printing a bullish engulfing candle and closing strongly above prior lower highs. This action created a new higher high, officially flipping the market structure from bearish to bullish.
From a technical perspective, this breakout signals that bulls have regained control—at least for the short to medium term. Price is now approaching the $0.42 region, a major high time frame resistance level that aligns with the volume-based point of resistance. This confluence zone is likely to act as a barrier in the immediate term.
A rejection from this area would not invalidate the new bullish trend, in fact, it would be considered structurally healthy. A pullback toward previous support or a retracement to form a higher low would help confirm the strength of the new trend. Traders should monitor how price reacts at $0.42 and whether volume remains supportive of continued upside movement.
What to expect in the coming price action
XLM may face short-term resistance at $0.42. A pullback from this zone is likely, offering a chance to establish a higher low. As long as price holds above $0.32, the bullish trend remains intact.
