Stellar (XLM) Price Prediction: Is a Massive Breakout on the Horizon?

Stellar (XLM) has been moving cautiously in the crypto market this September, hovering near a key support zone while recovering from recent resistance rejections.

After failing to break above $0.45, XLM has been trending down toward its critical $0.32-$0.30 area.

Traders are paying close attention, as the upcoming Protocol 23 upgrade could influence market sentiment and potentially set the stage for a breakout.

With long liquidations rising and trading volumes cooling, XLM is at a pivotal point where support and upcoming developments could determine its next major move.

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Key Takeaways

1. Critical support: XLM hovers near $0.32–$0.30, a zone considered ideal for accumulation.

2. Rising liquidations: Long positions are being closed, highlighting market pressure but also possible rebound opportunities.

3. Protocol 23 upgrade: The upcoming update could act as a catalyst for renewed bullish momentum.

XLM Moves Toward Key Support

Currently trading around $0.36, Stellar has faced a week-long decline of approximately 7%. Analysts note that the rejection from the $0.45 resistance level has shifted focus toward the $0.32-$0.30 support zone.

This area has historically acted as a base for rebounds, making it a critical range for traders seeking potential entry points.

Short-term indicators provide additional context. The EMA 9 sits at $0.37 while the SMA 50 rests near $0.41.

These levels suggest XLM is slightly below key averages but not yet in oversold territory. If buyers step in at the $0.32-$0.30 zone, a rebound toward $0.50-$0.55 could occur, mirroring past price action after similar support tests.

However, a decisive breakdown below $0.30 would weaken the setup, signaling further potential losses.

The current cooling in trading volume since July’s sharp rally indicates that the market is consolidating and waiting for direction, adding weight to the significance of this support range.

Read Also: XRP & Stellar Set to Surge as DTCC Eyes $2.5Q Market

Long Liquidations and Market Pressure

Recent data highlights an increase in long liquidations, reflecting the market’s sensitivity to XLM’s recent decline.

On September 2, long positions totaling $192,900 were closed, compared to only $55,750 in short liquidations.

OKX recorded the majority of these closures, while Binance showed both long and short liquidations.

The shift toward long position liquidations aligns with the pullback from $0.45, indicating that many traders who had bet on continued gains are now exiting.

While this could initially appear bearish, it also means that potential buyers could take advantage of lower prices near support zones.

For traders, understanding these liquidation trends is crucial. Long liquidations often provide temporary downward pressure but can set up ideal conditions for accumulation if buyers remain confident in the underlying fundamentals.

Read Also: Stellar (XLM) at a Crossroads: Breakout or Breakdown Ahead?

Protocol 23 Upgrade: Potential Catalyst

Stellar’s upcoming Protocol 23 upgrade, scheduled for September 3, introduces network changes that may influence market behavior.

While the immediate effect on price is uncertain, traders are monitoring the upgrade closely for possible bullish catalysts.

Network upgrades historically bring renewed attention to digital assets, sometimes triggering rebounds if investor confidence is restored.

With XLM near its key support and market consolidation in place, a successful upgrade announcement could encourage accumulation and potentially spark a breakout above resistance levels.

This combination of technical support, liquidations, and the upgrade sets up a scenario where traders and long-term holders could see renewed momentum.

Market participants should watch price movements closely in the days surrounding the Protocol 23 launch.

Read Also: XLM Price Analysis: Death Cross Looms as Stellar Faces Support Test

Conclusion

Stellar XLM is at a turning point. With prices hovering near $0.32–$0.30 support and long liquidations pressuring the market, the coming days will be crucial in determining whether XLM rebounds or experiences further weakness.

The Protocol 23 upgrade adds another layer of potential market influence, making this an important period for traders and investors.

For those looking to trade XLM or other cryptocurrencies during this critical phase, Bitrue offers a secure and user-friendly platform.

With robust tools, reliable liquidity, and a focus on safety, Bitrue can help traders navigate volatility and capitalize on potential breakout opportunities in the crypto market.

FAQ

What is Stellar XLM’s current support level?

XLM is approaching its critical $0.32-$0.30 support zone, which has historically served as a base for rebounds.

Why are long liquidations important for traders?

Long liquidations reflect positions being closed as price drops. They can temporarily pressure the market but also present accumulation opportunities.

What is Protocol 23?

Protocol 23 is Stellar’s upcoming network upgrade scheduled for September 3, introducing system improvements that could influence price movements.

What could cause XLM to rebound?

If buyers defend the $0.32-$0.30 support zone and market sentiment improves after Protocol 23, XLM could rebound toward $0.50-$0.55.

Where can I trade Stellar XLM safely?

Bitrue provides a secure and easy-to-use platform for trading XLM and other cryptocurrencies, ideal for navigating breakout opportunities.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.