Stellar (XLM) is highly volatile; the coin recovered the 200-day moving average after briefly losing it for just a few hours. Despite recovering this major support level, XLM is still under the clutches of the bears. However, the higher time frame charts show that the bulls are in control.
XLM shows choppy price action on daily charts
XLM prices have been highly volatile. Yesterday the XLM lost the 200-day support, but today the bulls were cautious and recovered it. XLM’s price action has always been jagged with sharp falls and vertical ascents.
During the latter stages of May, there was a burst of excitement that shot prices from $0.15 to $0.27. The XLM price increased by 80 percent, but the interesting part is about how XLM broke the two resistance levels, the 50-day MA and 200-day MA, with ease. However, this price appreciation was short-lived as traders started to take profits and there was a massive selloff.
Stellar partnership with Mastercard did not have the power to withstand the selloff
This selloff started to weigh heavily on the price, dragging it below $0.20. During the crash, Stellar made a partnership with Mastercard, where the electronic payment company expanded its settlement capabilities. With this expansion, Mastercard planned to accept fiat and stablecoins as payment, including stablecoins on the Stellar network. Nonetheless, this partnership did not help the crashing prices.
Stellar engaged with 4000+ developers worldwide in Q1 2026
According to an announcement on Stellar’s official site, “Stellar is now the fastest-growing developer ecosystem of any major chain, with 86% year-over-year growth in total developers,” according to Electric Capital. The ecosystem is also top-five by absolute developer count, with 4,400+ developers engaged worldwide in Q1.
Over three years, the developer community has grown 171%.”
Stellar forms bullish ascending triangle on higher time frames
Although the daily chart shows that the coin is still on a downward trend, crypto analyst who goes by the pseudonym Crypto Patel saw a totally different picture.
The analyst saw the formation of an ascending triangle, which has a flat top and a rising bottom. An ascending triangle is a bullish chart pattern characterized by a flat resistance level at the top and a rising support trendline at the bottom.
The flat top forms because sellers repeatedly defend the same price zone, preventing the asset from moving higher. Meanwhile, the rising bottom indicates that buyers are becoming increasingly aggressive, stepping in at higher prices after each pullback. This creates a narrowing price range as the battle between buyers and sellers intensifies.
As the pattern develops, traders view the higher lows as a sign of growing bullish momentum. Buyers continue to absorb the sell orders sitting at the resistance level, while sellers gradually lose control of the market. The repeated tests of resistance weaken the supply barrier over time, making it easier for the price to eventually break through.
A breakout occurs when buying pressure becomes strong enough to overcome the remaining sell orders at resistance.
