Stellar [XLM] bulls exhausted after rally – Is a pullback nearby?

Key Points

1. Stellar (XLM) reached $0.515, matching its January 2025 high, but bullish momentum has weakened, leading to a potential pullback.

2. A 4-hour timeframe showed a bearish divergence, indicating overextended market conditions after a 109.7% weekly rally.

3. Fibonacci retracement levels suggest potential support at $0.364 (50% retracement), with deeper support at $0.28 still maintaining the bullish structure.

4. Liquidation heatmaps highlight key liquidity zones at $0.445-$0.395 (long liquidations) and above $0.51 (liquidity cluster).

5. Despite the pullback possibility, the weekly chart remains bullish, with higher highs and higher lows established since May.