- Stellar Lumens’ pullback was heading towards key support levels at $0.3 and $0.36.
- An upward liquidity sweep could influence a likely price rebound towards $0.50.
Stellar Lumens (XLM) pumped 45% in early January but erased some gains. The recent market selloff could provide swing traders and investors with another buying opportunity.
After climbing from $0.30 to nearly 50 cents, XLM’s ongoing pullback was heading toward key levels that could once again interest the bulls.
Stellar Lumens Price Prediction
First, the New Year rally made the daily chart market structure bullish. This could be altered if the retracement extends below the recent low of $0.32.
Until this bearish change in market structure occurs, the current outlook was favorable for the bulls.
The recent pullback was around 18% and neared key levels of $0.36, and December support stopped the holiday sell-off at $0.30.
Both levels could be a re-entry into the market for bulls targeting an overhead bid below $0.50 (red zone). A bullish idea would be invalidated if XLM extends its decline below $0.30.
The $0.30 support was further strengthened by the weekly charts, which marked the cyan area as a circuit breaker block that could trigger a price rebound if defended.
Rising liquidity could attract XLM price
From a liquidity sweep perspective, there are two upward liquidity levels worth tracking. The first was between $0.43 and $0.45 and the second was between $0.48.
In most cases, these high liquidity areas still act as magnets for price action.
If so, they could be the next key bullish targets to be exploited by a likely XLM rebound. Interestingly, the upper liquidity zone aligns with the lower supply zone below $0.50 on the price charts.
In short, one could make a partial profit on the first target and liquidate the rest when the price hits the target of $0.48 to $0.50.
Read Stellar Lumens (XLM) Price Prediction 2025-2026
In conclusion, XLM’s market structure and liquidation heatmap suggest an excellent buying opportunity should the pullback extend to $0.30.
However, sustained selling below $0.30 would encourage sellers and invalidate the bullish thesis.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.