Stellar's native token, XLM, rebounded quickly after falling below $0.20, briefly dipping to $0.185 before rebounding from near the 200-day EMA, with a daily gain of 13%. The market is now focused on whether this recovery can continue.

It quickly recovered after breaking through the support level.

Looking at the price action, XLM initially fell below the $0.20 level, but then buying pressure increased significantly, pushing the price back above the 200-day EMA. This level is generally considered an important reference point for medium- to long-term trends.

The price quickly returned to the previous support area, indicating that market demand did not disappear after the liquidity below was triggered. The short-term trend thus corrected, and XLM returned to the vicinity of its previous trading range.

Market sentiment has improved somewhat.

Another factor driving improved sentiment is the market's renewed focus on Stellar's development track record. A widely circulated recent statement mentioned that DTCC's managing director and chief technology officer emphasized that trust is built on a long track record, and believes that Stellar has built such a foundation.

This statement provides some narrative support for XLM and has also led some market participants to re-examine the project's fundamental performance.

$0.27 becomes the next level to watch.

After a short-term rebound, the market's focus has now shifted to the resistance levels above. The current key level to watch is around $0.27, an area that previously acted as resistance during the upward movement.

If buying continues to strengthen and pushes XLM above this level, market attention may shift further to the higher resistance zone around $0.41. Currently, this rebound is still in a verification phase, with the key being whether buyers can extend the short-term correction into a more sustained upward trend.