Stellar (XLM), the cryptocurrency known for facilitating cross-border payments, may be on the brink of a significant change in its market trajectory. Recently, a key trend indicator known as the Supertrend flashed for the first time in over two years, hinting at the possibility of a macro trend shift. This has caught the attention of traders and analysts, as it signals a potential reversal from the cryptocurrency’s prolonged sideways movement and bearish trend.

Supertrend Indicator Signals Potential Change

The Supertrend indicator is a popular technical analysis tool used by traders to identify market trends and predict potential shifts. It’s a dynamic tool that adapts to price fluctuations and provides insights into whether an asset is in an uptrend or downtrend. A shift in the Supertrend indicator can indicate that the asset might be transitioning from a bear market to a bull market or vice versa.

In a tweet, Ali, a cryptocurrency analyst, pointed out that for the first time since January 2022, the Supertrend indicator has flashed a potential macro trend shift for Stellar (XLM). This is a noteworthy development, considering that the cryptocurrency has been relatively quiet in recent months, moving sideways in a market that’s been struggling with price fluctuations and broader market uncertainty.

XLM’s Price Action: Current Struggles

At the time of writing, XLM is trading at around $0.248, reflecting a 2.38% drop in the last 24 hours. This decline comes after a brief bounce in the broader cryptocurrency market, but recent selling pressure has subdued the optimism. As the market faces macroeconomic developments and news from major financial hubs, the potential for renewed selling is a real concern for many crypto investors.

However, despite the short-term struggles, the long-term outlook for Stellar is being watched closely by analysts. The potential shift signaled by the Supertrend indicator could mean that XLM is preparing for a reversal after its extended period of sideways movement. If this shift holds, it could be the beginning of a positive price action for Stellar, making it a coin to watch closely in the coming weeks.

Resistance Levels and Key Indicators

For any bullish momentum to materialize, XLM will need to break through certain resistance levels. The cryptocurrency encountered resistance at $0.3022 back in late March 2025, and it has since struggled to break above that level. Currently, XLM is on track to mark its third consecutive day of declines, reaching lows of $0.245.

A key price level to watch is the $0.289 mark, which represents the 50-day moving average. A sustained break above this level, especially in combination with a break above the 200-day moving average at $0.285, could signal that a bullish comeback is on the horizon. If this happens, the next targets for XLM would be $0.374 and $0.514.

Conversely, if the price continues to decline, support is expected at the $0.226 level. This support zone has held in the past, and it remains a critical level for XLM’s price action. If the market fails to hold this support, further declines may be inevitable, signaling that the expected macro trend shift may not materialize as anticipated.

What’s Next for Stellar (XLM)?

While one technical indicator is not enough to guarantee a price reversal, the flashing of the Supertrend indicator provides a compelling reason to monitor XLM closely in the coming days. The cryptocurrency has endured a tough few months, but the potential for a macro trend shift could signify the start of a more favorable period for Stellar.

Investors will be watching to see if XLM can break through its resistance levels and confirm a bullish reversal. For now, all eyes are on the Supertrend signal and the price action that follows. Should the trend hold, XLM could experience a significant rally, making it one of the most talked-about cryptocurrencies in the coming weeks.

With the broader cryptocurrency market experiencing volatility and uncertainty, Stellar’s future is still uncertain. However, the recent trend shift signal offers hope for potential bullish momentum, especially if the trend continues to unfold in the coming days. As always, traders should remain cautious and vigilant as market conditions evolve.