# Stellar (XLM) Tests Multi-Year Support: Bullish Target at $2.40 Analysts predict XLM could rally to $2.40 if the ascending trend continues. - **Source:** [DailyCoin](https://brifing.si/source/3e9b0f85-cb2f-40ee-ba61-db9410cf0937) - **Published:** 2026-08-17 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/a65bf1ae-2196-43f0-973c-d016cffa6aa4 ## Stellar's Ascending Support Line Stellar (XLM) is undergoing what technical analyst ChartNerd calls a 'bullish reset.' The price is testing a multi-year ascending support line that has historically marked significant bottoms. This long-term trend line served as a springboard in 2020, 2023, and 2024, with each touch preceding major rallies. XLM currently appears to be in the final wave (Wave 5) of a corrective structure along this blue trend line that dates back years. ## Historical Support and Future Projections ChartNerd notes that XLM price has swept recent lows and shows potential for forming a double-bottom pattern near the rising support. Previous major corrections on this chart saw drawdowns exceeding 70% before the next expansion phase. The current correction is approaching the average duration of past bear phases. The 1.272 Fibonacci extension points to a target zone between $2.40 and $2.45, suggesting significant upside potential if historical patterns repeat. ## The Critical Support Line The blue ascending support line remains crucial for XLM's future trajectory. Maintaining this line would keep the broader structure intact, while a decisive break below could invalidate the bullish reset thesis and open the door to deeper declines. Conversely, a strong bounce from this trend line would reinforce the idea that sellers are exhausting themselves at a historically significant level. Market participants are closely watching whether XLM can hold this support and regain short-term structure. ## The Role of Volume and Momentum For XLM to confirm the completion of its reset phase, analysts are looking for volume confirmation and a shift in momentum. These signals would strengthen the case that the correction has run its course. Until such confirmation appears, the ascending trend line remains the make-or-break level for XLM's price action. The cryptocurrency's ability to attract buyers with the same conviction as in previous cycles will determine whether this latest test of support leads to another expansion phase. ## Fibonacci Extension Targets ChartNerd highlights the 1.272 Fibonacci extension level at $2.40-$2.45 as a tangible target in the next bull run. This represents a substantial move from current levels, contingent on the ascending support holding firm. However, this isn't a short-term prediction. The XLM chart frames current action as a reset within a larger structure rather than an immediate breakout setup. Patience remains key, as previous multi-year consolidations along this trend line required similar waiting periods before significant moves materialized. ## What the Technicals Suggest Stellar's chart tells a story of repeated tests and eventual expansions from the same rising support. Key constructive elements include the potential double-bottom formation and the timing element as the correction approaches average historical duration. These technical factors suggest XLM may be preparing for its next leg higher, provided buyers step in with conviction comparable to previous cycles. The market now watches to see if history will repeat itself or if new dynamics will emerge to challenge this long-standing pattern. ## Market Dynamics and Expectations In the broader crypto market, XLM draws attention with its latest test of the ascending support line. Historically, strong reactions from these levels have led to significant rallies, and traders now watch for a potential repeat. However, market participants remain cautious without clear improvements in volume and momentum indicators. Long-term investors see potential opportunities if support holds, while short-term traders await clearer signals. The coming weeks could prove decisive for XLM's medium-term trajectory. ## Conclusions for Investors Stellar's (XLM) technical setup presents a scenario worthy of close monitoring. The multi-year ascending support line serves as a critical pivot point, with the $2.40 Fibonacci target offering attractive upside potential if the bullish reset succeeds. Investors should watch for volume confirmation and momentum shifts as key signals. A repetition of historical patterns could position XLM for outperformance in crypto portfolios. Analysts suggest that whether these technical levels hold or break will be one of 2026's notable market narratives, with significant implications for XLM holders and prospective investors alike. ## Sources covering this story - https://dailycoin.com/stellar-hits-multi-year-floor-xlm-eyes-bullish-reset-to-2-40/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._