The crypto market is going through a phase of uncertainty, with Bitcoin fluctuating within ranges and altcoins showing mixed signals. In this scenario, Stellar (XLM) is trading close to $0.25, following a slight recovery from a significant support zone.
The price broke a short-term downtrend line, sparking interest among traders speculating about a possible reversal.
On the 4-hour chart, XLM has surpassed the downward trend it had been respecting since early May. The change occurred after a Break of Structure (BOS), marking a new high with strength and volume. Currently, the price is consolidating just above the broken resistance.
The current projection suggests that if the support at $0.245 is maintained, the price may continue to rise to the Fibonacci retracement level of 0.5, at $0.275, or even reach $0.289 (0.618). For this, a considerable increase in volume will be necessary, which should also prevent retracements below $0.24.
In a bearish scenario, if Stellar loses the newly acquired support and returns to the range below $0.245, a false breakout could occur. In this case, the price would return to the demand zone at $0.225, pressured by selling strength.
Analysis of XLMUSDT on the weekly chart
The weekly chart still displays a bearish structure, with a strong downward trend since the last significant high.
However, the price finds support in a key demand zone, momentarily halting the decline. Volume remains low, raising doubts about the consistency of any recovery attempts during this period.
From an optimistic perspective, XLM may begin a reversal if it consolidates a higher low over the current demand zone. A confirmed break of the downtrend line, accompanied by a weekly close above $0.30, would represent a clear signal of a possible cycle change.
On the other hand, if XLM loses the support around $0.22, the price may retreat to even lower levels, resuming the downtrend. The lack of buying interest, evidenced by declining volume, tends to exacerbate this movement.
What will happen to XLM?
Stellar shows initial signs of reversal in the short term but still faces a prevailing downtrend structure in the long term.
To sustain a recovery in July, the price needs to remain above $0.245 and demonstrate increased volume. Without a consistent break of relevant resistances, any advance may be limited to a bounce within a descending cycle.
The article What to expect from the price of Stellar (XLM) in July 2025? was first seen on BeInCrypto Brazil.
