A major structural shift has occurred in Stellar (XLM) after it broke below a key trendline that had been holding its price since mid-April. A push toward the $0.26 area could be set up by the maneuver, allowing sellers to gain more control in the short term.
Up until now, the price of XLM had been trending within an ascending channel, gradually building momentum and hitting higher lows. Its four-hour chart now shows that the channel has been broken, with the price dropping through the lower boundary and slipping under the 0.618 Fibonacci level near $0.274.
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Current trading price is around $0.286, still close to the break but noticeably below the support level. The last bounce off the channel line failed to hold, and since then, price action has turned more bearish, with lower highs forming and pressure building to the downside.
The next area to watch is the $0.26 zone, which lines up with previous lows and may offer short-term support. Failure to hold that level would open the chart up toward the next key Fibonacci level at $0.243.
Right now, this Stellar shift is happening alongside Bitcoin holding solid at around $107,000, following a strong rally that lasted several weeks. Concurrently, XRP remains within a narrow price range below $2.35, displaying no clear upward or downward trend. In that context, XLM’s clean breakdown below the trendline support stands out more, especially with BTC and XRP being relatively stable.
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The recovery structure that had been helping XLM rise now looks broken, and with major cryptocurrencies not offering much momentum either way, there’s little external support to lean on. Unless Stellar can bounce back above $0.29 and solidify that position, it looks like the short-term trend is bearish.
This isn’t a confirmed trend reversal by any means, just the most notable technical signal XLM has shown in weeks. And with other large caps moving sideways, chances are this drop is going to stay on the radar heading into next week.