In our previous analysis, we had suggested long positions in Stellar if the bulls buy the dip at $0.23. Currently, the price is struggling to hold above the downtrend line.
If prices dip back below the downtrend line, a retest of the $0.2 level is possible. If this level breaks, the next support is way lower at the support line of the descending channel.
Therefore, we suggest buying the XLM/USD pair on a close (UTC) at $0.25, which will confirm a successful retest of the downtrend line. The target objective on the upside is $0.32 followed by a move to $0.35.
The initial stop loss can be kept at $0.19, on a closing basis (UTC), which can subsequently be trailed higher.