Stellar price is holding at critical confluence support around $0.32, aligned with the golden pocket Fibonacci zone and value area low. A breakout from the wedge formation could propel price toward $0.50 resistance.
Summary
- Stellar is holding at the golden pocket (0.618), aligned with high-timeframe support at $0.32 and the value area low.
- An 8-point falling wedge formation is nearing its breakout point.
- Confirmation with volume could drive price toward $0.50, the wedge’s technical target and major resistance.
Stellar (XLM) has reached a pivotal technical region that could determine its medium-term trajectory. Price action is currently testing the golden pocket Fibonacci retracement zone, aligning with the value area low and high-timeframe support at $0.32. The setup is reinforced by a falling wedge pattern, a historically bullish formation that often precedes sharp rallies when confirmed with volume.
With these factors converging, Stellar could be on the verge of a significant breakout rally toward $0.50. Supporting this outlook, Ondo Finance has introduced USDY, a yield-bearing stablecoin backed by U.S. Treasuries and bank deposits, marking the first of its kind on the Stellar network.
Stellar price key technical points
- Golden Pocket Support: Price is testing the 0.618 Fibonacci level, overlapping with high-timeframe support at $0.32.
- Value Area Low Confluence: The region aligns with the value area low, strengthening this zone as a reversal point.
- Bullish Wedge Formation: An 8-point falling wedge is nearing its apex, with volume likely to drive the breakout.
Stellar has retraced into the golden pocket after its previous impulsive move higher. This retracement carried price back to $0.32, where technical confluence is strongest. Historically, the golden pocket has been a prime reversal area for major assets, particularly when combined with value area lows and structural support. Buyers have begun to step in at this zone, signaling a potential accumulation phase before the next bullish impulse.
The 8-point wedge formation adds a compelling layer to the technical setup. Falling wedge patterns typically resolve with a bullish breakout, especially as price compresses toward the apex. The fact that this wedge overlaps with the golden pocket at $0.32 further strengthens the bullish bias.
If the breakout occurs, the measured technical target lies at $0.50, which also corresponds with a major high-timeframe resistance level. While the structure is bullish, confirmation depends on volume. A breakout backed by increasing demand would validate the wedge and trigger follow-through momentum toward $0.50.
Without sufficient volume, however, Stellar risks extended consolidation or false breakouts before establishing a clear trend. At the same time, Visa has broadened its stablecoin settlement platform with new blockchains and stablecoins, including Europe’s USDG.
What to expect in the coming price action
If Stellar holds the $0.32 golden pocket and breaks out of the wedge with volume, the market could see a rally toward $0.50 resistance, the technical target of this pattern. Failure to hold this level, however, would expose the asset to further downside, potentially retesting deeper supports.
