Stellar (XLM) climbed back into positive territory after buyers reversed an earlier sell-off from an intraday low near $0.172. A falling wedge on the 4-hour chart points to a possible price rebound, though the pattern still needs to be confirmed by a break above its descending resistance line. The $0.23 target depends on sustained buying, while a break below wedge support could expose XLM to further losses.

Falling Wedge Draws Attention to $0.23

ALLINCRYPTO (@RealAllinCrypto) describes the four-hour chart as a textbook falling wedge in an analysis shared on X. According to the analyst, the setup presents an opportunity for recovery even as market fear persists. The proposed target stands near $0.23, although an upward breakout remains unconfirmed.

The analysis was published as XLM showed signs of recovery following a steep decline, with the falling wedge pointing toward a possible $0.23 objective. For readers less familiar with the terminology, a falling wedge is a chart formation in which price compresses between two downward-sloping, converging trendlines during a decline; technicians generally treat it as a potential reversal setup only once price breaks above the upper line, which is why the analyst's $0.23 objective remains conditional rather than confirmed.

The chart shows XLM rising from below $0.18 in mid-September. The rally reached approximately $0.23 near the end of September before losing momentum. Sellers then pushed prices lower, creating a sequence of declining highs and lows. Two descending trendlines outline the narrowing price structure throughout October: the upper line acts as resistance, while the lower line connects a series of lows. Their convergence forms the pattern behind the potential recovery scenario.

The token trades near the lower boundary, where buyers could attempt to stop further losses. A sustained rebound would strengthen the bullish case if higher lows begin to form. However, continued weakness could keep prices within the declining structure. The setup is notable because it tests whether the dip-buying that emerged on the intraday chart can extend to the higher-timeframe structure; until that happens, the wedge remains a scenario rather than a signal.

Intraday Recovery Returns XLM to Positive Territory

The 24-hour chart depicts a sharp sell-off followed by a powerful recovery. XLM was initially trading around $0.177–$0.178 before dropping in the morning. Selling continued into the afternoon, bringing the price close to $0.172. The decline slowed near that low before buyers began pushing prices upward. A stronger advance later carried the token above $0.176, and the chart showed green price action as XLM approached $0.179.

Market data places the token at $0.1784, up approximately 0.2% over 24 hours. The daily gain follows a substantial intraday decline and subsequent recovery. The data indicates a market capitalization of approximately $6.28 billion. XLM is the native token of Stellar, a payments-focused blockchain network.

Trading volume rose 8.52% over the past 24 hours, an increase that mirrored the price action's quick fall and recovery. However, volume alone cannot establish whether buyers will maintain control.

Resistance and Support Will Determine the Next

The $0.178–$0.179 is immediate resistance after the intraday rebound. Strong action above recent highs may fuel another recovery push, but repeated rejections at this level could result in sideways trading or further declines.

On the 4-hour chart, the descending upper trendline remains a major hurdle. Buyers will need to breach it and reclaim the territory it has capped. A brief move through resistance would provide limited confirmation without follow-through.

The analyst's $0.23 target sits near the upper boundary of the earlier trading range. The chart also marks resistance around $0.236, above the proposed target. Reaching either level would require a substantial recovery from current trading levels.

Support around $0.176 could become relevant if selling pressure returns. Below that area, the intraday low near $0.172 provides another reference point. A break below the wedge's lower boundary would weaken the bullish pattern.

Immediate direction hinges on whether buyers defend support and challenge the descending resistance. An upward break through the breakout level would confirm the recovery move. The $0.23 forecast remains pending for now, with downside risk still in play. Until one of those levels gives way, the pattern stays a scenario rather than a signal, leaving both the recovery target and the downside reference points in play.