Is Stellar (XLM) Setting Up for Its Next Major Breakout?

TL;DR

• Stellar nears critical $0.32–$0.30 support zone after rejection at $0.45 resistance.
• Long liquidations dominate, with $192K closed as XLM slips from the $0.40–$0.45 range.
• Protocol 23 upgrade on September 3 adds attention as traders watch for a breakout setup.

Price Moves Toward Demand Zone

Stellar (XLM) was trading at $0.36 at press time, with a 24-hour volume of $288 million. The token is little changed on the day but has fallen 7% over the past week.

Alpha Crypto Signal noted that XLM is approaching a key support area.

“The rejection from the $0.45 resistance is playing out cleanly, and price action is now inching toward that key demand area at $0.32–$0.30,” the group said.

They added that this zone remains their focus for accumulation. The daily chart shows that XLM is under pressure after being rejected from $0.45. The asset is now heading toward the $0.32–$0.30 range, which has previously served as a base for rebounds.

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Short-term trend indicators are positioned above current levels, with the EMA 9 at $0.37 and the SMA 50 at $0.41. If buyers defend the support, a rebound toward $0.50–$0.55 remains possible. A decisive break under $0.30, however, would weaken this setup and point to further losses.

Trading volumes have cooled since July’s sharp rally, suggesting consolidation as the market waits for direction.

Long Liquidations on the Rise

Recent liquidation data shows that long positions are being squeezed as XLM moves lower. On September 2, long liquidations reached over $192,900 compared with $55,750 in short liquidations.

The largest share came from OKX, where $138,160 worth of long positions were closed. Binance recorded both long and short liquidations, while earlier in July, the trend was reversed, with shorts being liquidated as XLM rallied to nearly $0.50.

Meanwhile, the shift toward long liquidations mirrors the pullback from $0.45 and highlights the importance of the $0.32–$0.30 support range.

Upcoming Protocol Upgrade

Stellar’s next network update, Protocol 23, is scheduled for September 3. The upgrade will introduce changes to the system, though its immediate effect on market behavior is uncertain.

With price nearing a crucial support level and the upgrade on the horizon, traders are watching to see if XLM can stabilize and set up for another breakout attempt.