Stellar's XLM token is testing support near the $0.17 level after a month of persistent selling pressure, while analyst Giannis Andreou has outlined two resistance levels that stand between the token and a potential recovery toward $0.80.

Stellar is a payments-focused blockchain that has operated since 2014, designed for low-cost, cross-border transfers, with XLM serving as the network's native asset. That places the token within the payments and remittance segment of the crypto industry.

XLM last traded near $0.1689 on Binance's four-hour chart, well below the highs above $0.23 it reached in late September — a retracement of more than 25% from those peaks. Immediate support sits around $0.167–$0.165. According to Andreou, the first overhead hurdle is $0.2254, followed by a broader macro resistance zone between $0.45 and $0.50.

XLM Extends Pullback From September Highs

XLM traded between $0.21 and $0.23 through late September and briefly moved above $0.23 around September 29. Momentum weakened in October, however, pushing the token below $0.21 and then below $0.20. A rebound toward $0.205 around October 11 failed to reverse the decline, and by mid-October XLM had slipped under $0.19. A further recovery attempt near $0.187 around October 21 also faded.

The most recent four-hour Binance candle shows XLM $0.1689, up 0.54% on the latest print. The candle opened at $0.1680, climbed to a high of $0.1699 and fell to a low of $0.1673, on trading volume of 2.03 million XLM.

Momentum indicators remain subdued. The Relative Strength Index (RSI), a widely used momentum gauge that flags potentially overbought or oversold conditions, stands at 37.36, above its average of 33.43 but still below the neutral 50 threshold. The Moving Average Convergence Divergence (MACD) indicator, which tracks the relationship between two moving averages of price, adds to the cautious picture: its line sits slightly below its signal line, with readings of -0.0026 and -0.0025 respectively, leaving short-term momentum tilted mildly bearish.

Analyst Flags $0.2254 as the First Hurdle

In a chart analysis shared on X, Andreou said XLM's weekly chart is testing rising support around $0.16–$0.17. Any recovery, in his view, would first need to reclaim $0.2254 and break above a steeper descending trendline, as marked on his TradingView chart. The sequencing follows a familiar pattern in technical analysis, where reclaimed resistance levels are watched for a flip into support before larger targets come into play.

A successful move through those levels could bring the $0.45–$0.50 macro resistance zone into focus. Andreou's scenario allows for an initial rejection at the trendline before a second breakout attempt. If XLM subsequently flips that trendline into support, the analyst sees a possible route toward $0.80.

Support Levels Could Shape the Next Move

On the four-hour timeframe, immediate support is clustered around $0.167–$0.165, followed by $0.160, a round-number level often treated as a psychological marker in chart analysis. A break below $0.165 could extend the decline. Overhead, resistance is positioned around $0.175–$0.180, with another barrier between $0.187 and $0.190. How the token behaves at these levels could shape its next directional move.

A sustained recovery above $0.180 would provide an early sign that price momentum is improving. Andreou cautioned that losing the rising weekly support would weaken the recovery setup, a development that would undermine the recovery scenario he outlined.