XLM Price Maintains Key Support Level - Can Stellar (XLM) Break Through $0.50 or Will It Drop to $0.375?

Stellar (XLM) has stabilized around $0.42 after a significant decline, with traders divided in their opinions. Bulls are focused on whether it can break through $0.50, hoping to test $0.77, while bears warn it may drop to $0.375.

According to data from Ali Charts, on the short-term 10-minute chart, XLM formed an ascending wedge after falling from above $0.47 to $0.416. This structure shows higher lows but flat highs, forming a tightening pattern with limited room left before a pullback.

The price has tested the resistance level of $0.432 multiple times but has failed to break through, indicating weakening momentum. As the wedge approaches its apex, volatility is decreasing. If it breaks below this level, XLM may fall below the support level of $0.41, with an expected target extending to $0.375.

The lack of strong trading volume exacerbates uncertainty. Due to repeated failures to bounce back, and the small candlestick chart near the resistance level, buyer confidence seems weak. Unless a breakout occurs, sellers will continue to control the short-term trend.

Institutional Activity Enhances Long-Term Bullish Outlook

Despite recent caution, the adoption rate of Stellar remains strong. Joe Swanson emphasized that the number of Stellar (XLM) enterprise wallets has reached 9.69 million, with a total locked value (TVL) exceeding $150 million. Institutional investor activity continues to accelerate, with over 5,000 new enterprise addresses added daily.

This indicates that large institutional investors are accumulating funds, laying a solid foundation for future rises.

Analysts point out that the real trigger point lies at the resistance level of $0.50. A breakout at this resistance level may open the door to $0.60 and even $0.77, levels that have been viewed as potential bullish targets and are receiving significant attention.

Outlook: Bull and Bear Markets Meet at $0.50

The $0.50 area remains a dividing line. A successful breakout of this area will indicate strong XLM price action and may attract more buyers; while failure to break through this area may keep XLM price fluctuating within the range of $0.41 to $0.50.

Currently, Stellar balances between a short-term bearish wedge and overall strong adoption fundamentals. The next decisive move will depend on the market's reaction around $0.50.