- Stellar (XLM) is approaching the $0.60 resistance level, supported by higher lows and a bullish falling wedge pattern.
- If support holds above $0.22, analysts predict a potential breakout toward $1.20 in 2025.
Stellar (XLM) is back in the spotlight as it approaches the $0.60 resistance zone for the third time in its history. This critical level has proven to be a major barrier during past bull cycles—in 2017, 2021, and again in late 2024. But this time, a combination of technical patterns and rising investor interest hints that a breakout could be brewing.
Higher Lows Signal Strength
Despite repeated failures at $0.60, XLM has shown a consistent pattern of forming higher lows. In 2017, the price crashed below $0.18. By 2022, it had formed a base slightly above that level. Now in 2025, the token appears to be setting another higher low around $0.20—often considered a bullish signal in technical analysis.
This staircase-like trend suggests growing resilience in Stellar’s market structure. The price is currently hovering around the 0.786 Fibonacci retracement level, a key area often associated with powerful reversals or trend continuations.
A Stellar Falling Wedge with Breakout Potential
One of the most compelling indicators is the formation of a massive falling wedge pattern on the chart—a historically bullish setup. While XLM failed to break this pattern in previous market cycles, current indicators suggest it might finally break through.
If the token can hold support above $0.22 and avoid slipping below $0.20, analysts expect a surge. Fibonacci extension targets are placed around $1.00 to $1.20, signaling a potential 2x rally from current levels.
Short-Term Caution Still Advised
However, not everything points to an immediate rally. Both the daily and 4-hour RSI charts show XLM as overbought, which could trigger a short-term correction. A dip toward the $0.26 support zone might be on the cards, possibly serving as a consolidation phase before a larger move up.
Whether Stellar takes a brief breather or powers through resistance, this could be a pivotal moment for XLM. With bullish signals building and historical patterns aligning, traders and long-term holders alike are watching closely. A successful breakout above $0.60 could reshape Stellar’s price trajectory for the rest of 2025.
ALSO READ:Stellar in 2025 – Key Factors That Will Influence XLM Value
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