XRP Rival Stellar (XLM) Just Flashed Major Crash Signal

Stellar (XLM) Breaks Below Key Trendline, Signaling Potential Bearish Shift

Stellar (XLM) has experienced a significant structural shift, as the cryptocurrency has broken below a crucial trendline that had been supporting its price since mid-April. This maneuver could set the stage for a push towards the $0.26 area, potentially allowing sellers to gain more control in the short term.

Until now, XLM's price had been trending within an ascending channel, gradually building momentum and hitting higher lows. However, the 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.

The 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, the 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.

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.

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.