Stellar Price Tests Multi-Year Support Line Ahead of Potential Bullish Reset

Stellar (XLM) is currently testing its multi-year ascending support line, a trendline that has repeatedly marked major bottoms in the past. According to technical analyst ChartNerd, this could be a bullish reset for XLM, with price potentially rebounding off this level.

The long-term chart of XLM shows it sitting inside what appears to be the final leg of a corrective structure after a series of higher lows along a blue ascending trendline that dates back years. This trendline has previously acted as a springboard in 2020, 2023, and 2024, with each time price tagging it and holding leading to a meaningful expansion.

The analyst highlights several constructive elements, including the potential double-bottom structure near the rising support and the fact that prior major corrections on this chart delivered drawdowns of 70%+ before the next expansion phase kicked in. ChartNerd points out that the current correction is approaching the average duration of those earlier bear phases, adding a timing element to the technical case.

The blue ascending support remains the critical line, and as long as it holds, the broader structure stays intact. A decisive break below it would weaken the bullish reset thesis and open the door to deeper downside.