Recently, signs of an upward trend in Stellar (XLM) are emerging as this digital currency is forming higher lows. This pattern may indicate that buyers are gradually overcoming the selling pressure. However, the decrease in trading volume suggests that the upward trend is not fully confirmed yet, so caution is still necessary. After hitting a price floor of $0.315, XLM showed relative resistance and improvement; it is currently trading around $0.34. Buyers seem to be trying to regain market control while sellers are losing their power. This is confirmed by forming a higher price floor compared to previous lows in the $0.30 range. To confirm a trend reversal, XLM needs to reclaim the $0.365 to $0.38 range, which aligns with the 50-day moving average. Breaking the $0.398 resistance could be a strong bullish signal, paving the way for Stellar’s price movement towards $0.42 and above. However, a fundamental issue is the declining trading volume. Although XLM has formed a higher low, significant lack of buying volume suggests that price improvement may not be very strong. Without an increase in demand, any upward movement could be weak and face strong resistance near $0.365. If Stellar fails to maintain the $0.341 level, we may witness another intense sell-off pushing XLM towards $0.315 or even the key support level of $0.30. Breaking below this level could invalidate the trend reversal scenario, dragging XLM to lower levels.
