Stellar (XLM) is showing early signs of a potential rebound after printing a fresh TD Sequential “9” buy signal on the weekly chart a setup that previously preceded a strong rally.
According to crypto analyst Ali Martinez, the signal has appeared right inside a long-term demand zone where buyers have historically stepped in. The last time this same technical pattern emerged at similar levels, XLM went on to nearly double in price.
However, while the signal has caught traders’ attention, confirmation will depend on whether buying pressure returns and holds this support area.
Price retraces sharply from summer highs
XLM has declined significantly from its summer peak, with weekly candles now forming a consolidation structure similar to past bottoming phases. Technical charts suggest the token has returned to a zone where downside momentum previously stalled and reversed.
This retracement has reset momentum indicators, allowing long-term signals like the TD Sequential to come back into play.
Intraday volatility highlights active interest
Short-term trading data shows sharp intraday price swings, including a strong upside spike followed by a pullback. Market volume was heavily concentrated during the initial upward move, signaling aggressive participation from traders.
After the volatility cooled, Stellar’s price stabilized back within the demand zone highlighted on the weekly timeframe a level closely watched by technical analysts.
What the TD Sequential signal means
The TD Sequential is a popular technical indicator used to identify trend exhaustion and potential reversals. A completed “9” count often signals that selling pressure may be weakening and that a shift in momentum could follow.
That said, analysts caution that TD Sequential signals are not guarantees. Without sustained demand, the signal alone may fail to produce a lasting trend reversal.
Traders watch for confirmation
Market participants are now monitoring whether buyers will defend the current support zone in the coming weeks. A strong reaction from this level could reinforce the bullish case, while broader crypto market sentiment will likely play a decisive role.
If historical patterns repeat, Stellar may be setting up for another rebound but confirmation from volume, structure, and overall market strength remains essential.
