XLM to Hit $0.50 Amid Bullish Divergence: Is Stellar’s Big Breakout Just Around the Corner?

Recent price action suggests a significant shift in momentum for Stellar (XLM), with the coin currently trading at $0.2358. Despite a 12.38% weekly drop and a 5.96% monthly decline, the emergence of a bullish divergence offers renewed optimism. Analysts believe that this pattern may indicate a reversal, especially as XLM approaches a critical support zone. If confirmed, XLM price predictions may signal a significant turnaround toward greater price targets.

Technical analysts closely observe a falling wedge pattern, as assets are typically associated with bullish outcomes. This setup, along with MACD displaying a bullish divergence, sparked speculation of an achievable price surge. While the broader market remains cautious, these signals contribute to increased buying pressure. With the wedge narrowing near the assist between $0.221 and $0.209, traders hope for a smooth breakout that could push the XLM rate prediction up to $0.50 in the coming weeks.

Support Zone: Why $0.221–$0.29 Matters for Stellar (XLM)

The zone between $0.221 and $0.209 proves necessary for Stellar, acting as a base during certain market corrections. Historically, this range has served as strong support, and analysts agree that holding above it is essential for bullish sentiment to return. Volume indicators recommend increased accumulation in this area, which should serve as a launch if the overall market conditions improve. A bounce right here would reinforce the conceivable upward movement following the bullish divergence.

Chart 1:- XLM/USD, Published on Coinmarketcap, 10th April,2025

Although Stellar has faced significant pressure, it has not gone below this zone. This stability, combined with improved technical indicators, strengthens the possibility for a viable breakout. Many investors use this level to set stop losses and entry points. If the price follows this support, it may verify a bullish reversal narrative. This makes it important to validate the XLM price prediction of a climb toward $0.50 in the medium term.

Analysts Signal Rising Confidence in a Bullish Move

Well-known crypto analyst Andrew Griffiths identified a bullish divergence in the MACD chart for Stellar, an achievable upward breakout. This divergence appears when the price decreases, while the indicator forms more incredible lows, a classic signal that selling stress is fading. Griffiths believes that this setup and the falling-wedge pattern should push prices notably higher if a breakout occurs. A breakout serves as a strong confirmation for bullish traders already accumulating positions.

Another person, known as “Man of Bitcoin,” has also cited the technical boundaries forming around XLM. While he expressed some warnings about the risk-to-reward ratio, he acknowledged that clear buying and selling patterns were present. These defined tiers help merchants better control their entries and exits while expecting price movements. The combination of growing analyst self-confidence and supportive technical structures makes the XLM price prediction of $0.50 more credible in today’s uncertain crypto landscape.

Bullish Divergence: A Key Driver of Market Sentiment

The presence of a bullish divergence on the Stellar MACD chart influences short-term sentiment. As one of the most broadly followed momentum indicators, the MACD is often considered the primary indicator of price changes. In XLM, this divergence adds to the notion that a reversal may occur. Technical merchants typically look for such divergences when assessing whether a trend is over and whether a new one may begin, particularly close to strong support.

Chart 2: Posted on X, 10th April, 2025

If this bullish divergence leads to a breakout, it should set the market narrative on Stellar (XLM), which has been lagging in recent months. Investors who became cautious may return with sparkling optimism, particularly as the technical setup aligns with historic rebound patterns. However, confirmation is key; without going above the wedge’s upper trend line and sustained volume, the divergence remains speculative. However, market watchers are increasingly hopeful of a breakout that justifies this bullish stance.

What’s Next for Traders Watching XLM?

With all eyes on the $0.221–$0.209 support range, merchants are preparing for both a breakout and a renewed downside. As the falling wedge tightens and volume builds, a decisive move can occur. If Stellar (XLM) manages to break the upward level, the target of $0.50 might also not be far. Given the broader market volatility, merchants are advised to remain cautious but organized for quick action based on pattern confirmations. Both long-term traders and short-term speculators monitor the same technical levels. A profitable breakout driven by bullish divergence would solidify XLM’s position in the altcoin market and bring renewed interest to mid-cap cryptocurrencies.