Stellar (XLM) breaks below the ascending channel and 0.618 Fibonacci level, signaling a shift in short-term market structure.
The current price near $0.286 struggles to regain former support, with bearish momentum gaining traction after channel failure.
Key support at $0.26 could provide near-term relief, but breakdown continues as the broader market remains largely neutral.
Stellar (XLM) has broken below a key ascending channel that had supported its price since mid-April. The move has disrupted the token’s previous bullish structure, setting the stage for potential short-term losses. Sellers have gained ground as price action now trends downward, with bearish pressure growing after slipping under the 0.618 Fibonacci level near $0.274.
Until recently, XLM had been holding within a steady upward channel. It consistently formed higher lows and gradually climbed toward new short-term highs. However, a recent shift saw the price drop below the lower boundary of this pattern. This break has altered the market structure and ended the rising trend that had been in place for over a month.
Current Price Holds Just Above Breakdown Level
At the time of reporting, XLM is trading near $0.286, slightly above the breakdown point but below the former support zone. The last attempt to rebound off the channel line failed, confirming the weakening upward trend. Price movements have since formed lower highs, indicating the start of a bearish momentum phase.
https://twitter.com/ali_charts/status/1926419943354147172
The 0.618 Fibonacci retracement at approximately $0.274 did not hold, further confirming the bearish structure. Attention has now turned to the $0.26 zone, which aligns with previous support levels. If XLM fails to stabilize at that point, it may face a further decline toward the next major Fibonacci level near $0.243.
Market Context Shows Relative Stability Elsewhere
Stellar’s downturn is occurring while major cryptocurrencies remain largely stable. Bitcoin is holding near $107,000 following a recent multi-week rally, and XRP is consolidating below $2.35 without major price shifts. With the broader market showing no strong upward or downward movement, Stellar’s clean breakdown has drawn increased attention.
The recovery pattern that previously guided XLM higher now appears invalidated. Unless the price moves decisively back above $0.29, sellers are likely to maintain short-term control. The chart reflects a clear structural shift rather than a temporary dip, placing Stellar in a delicate technical position as the new week approaches.
The post Stellar (XLM) Slips Below Key Support, Eyes $0.26 as Bearish Pressure Builds appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
