Stellar (XLM) Approaching a Decision Zone inside the Descending

Stellar continues to move inside a broad descending channel, a structure that has been guiding price since the October high. The recent decline found support at the lower boundary of this channel, where buyers stepped in and created a short-term reaction. This zone now acts as an important decision point for the next directional move.

Price is currently retesting a mid-range support cluster that includes the fifty percent and sixty-one point eight percent retracement levels of the latest impulse. This confluence zone often acts as a turning area when paired with a corrective decline inside a channel. If the market holds this level and pushes above the minor trendline resistance, the structure allows room for a broader recovery toward the upper boundary of the channel.

A confirmed breakout from the channel, followed by a successful retest, would open the path toward the mid-term resistance near zero point three one. This level aligns with previous supply and serves as the next major upside objective.

However, failure to hold the current support zone may send Stellar back toward the channel’s lower boundary around the zero point two one region. A breakdown below this area would signal continuation of the descending trend and postpone any meaningful recovery attempts.

Key Technical Notes:

Price remains within a well-defined descending channel on the four-hour timeframe.

Current structure is respecting a support cluster formed by Fibonacci retracements and previous demand.

Break and hold above the minor descending trendline would confirm bullish momentum.

First upside target sits at zero point two six, extended target near zero point three one.

Loss of the support zone exposes zero point two one and below.

Bias:
Neutral until the breakout is confirmed. Balanced risk on both sides with clear invalidation levels.