XLM rebounds 13% after liquidity sweep as Stellar trust narrative returns

Stellar's XLM staged a sharp 13% intraday reversal on June 6 after a liquidity sweep below the $0.20 support zone triggered aggressive buying.

XLM fell as low as $0.1850 during the Asian session before buyers stepped in, pushing the token back above its 200-day exponential moving average band. The move followed what traders described as a textbook liquidity grab — a dip designed to clear stop-losses and weak hands before a reversal.

"The rebound came immediately after a sweep of the $0.20 area, which had been a key support level for weeks," data from CoinGecko shows. XLM was trading near $0.2090 as of 14:30 UTC, up 13% from the session low.

The recovery coincided with renewed attention on Stellar's development track record. A June 4 post from the Stellar Development Foundation highlighted remarks from Dan Doney, managing director and CTO of the Depository Trust & Clearing Corp., who said trust starts with a strong track record and described Stellar's as "airtight." DTCC is the primary clearinghouse for US securities markets, settling trillions of dollars in trades annually.

The next resistance level sits at $0.2700, a zone that capped XLM's upside during a prior rally in May. A break above that level would open the path toward $0.4100, while a failure to hold the 200-day EMA could retest the $0.1850 low. The token remains down roughly 30% from its year-to-date high of $0.2980 reached in March.

Stellar's blockchain processes cross-border payments and tokenized asset settlements, positioning it as a competitor to Ripple's XRP in the enterprise payments space. The network has seen increased institutional interest as traditional financial firms explore blockchain-based settlement rails.

This article is for informational purposes only and does not constitute investment advice.