- Stellar (XLM) has broken below a key trendline, signaling a potential short-term price drop toward the $0.26–$0.243 range.
- While Bitcoin and XRP remain stable, XLM’s bearish breakdown stands out and may continue unless it reclaims the $0.29 level.
Stellar (XLM), often viewed as a sibling rival to XRP in the payments-focused blockchain space, is showing signs of a significant downturn. A recent break below a key ascending trendline has triggered a strong bearish signal, putting XLM at risk of a steep price correction.
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Breakdown Below Trendline Triggers Caution
Since mid-April, XLM had been comfortably trading within an ascending channel, gradually building support with higher lows. However, that structure has now collapsed. XLM broke below the channel’s lower boundary and dropped beneath the 0.618 Fibonacci level near $0.274—a key support level many traders were watching.
#Stellar $XLM could be breaking out of an ascending channel, potentially targeting $0.26! pic.twitter.com/DLSOF4CQOe
— Ali (@ali_charts) May 24, 2025
The token is now trading around $0.286, slightly above its recent lows but below the crucial trendline. The breakdown is further confirmed by the appearance of lower highs on the four-hour chart, indicating that sellers are gaining the upper hand. Market watchers are now eyeing the $0.26 area, a historical support zone that could act as a temporary floor. If XLM fails to hold this level, the next likely stop is the $0.243 mark, another significant Fibonacci level.
XRP and Bitcoin Stay Flat as XLM Sinks
What makes Stellar’s decline even more notable is the broader market context. Bitcoin (BTC) remains steady at around $107,000 after weeks of gains, while XRP is consolidating below the $2.35 level, neither showing significant bullish nor bearish patterns. In this landscape of relative calm among major cryptocurrencies, Stellar’s sharp technical breakdown stands out sharply.
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Short-Term Outlook: Can Stellar Rebound?
For XLM bulls, a recovery will require reclaiming the $0.29 level quickly. Doing so would invalidate the current bearish setup and potentially restore confidence. But for now, the price action suggests a strong short-term downtrend, especially with minimal help from the broader market.
Although this isn’t a confirmed long-term reversal, it’s the clearest bearish indicator XLM has flashed in weeks. With little external momentum to counteract the drop, traders and investors should brace for potential further downside in the days ahead.
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