Is Stellar (XLM) Gearing Up for a Bullish Reversal? This Fractal Saying Yes!

Date: Thu, June 19, 2025 | 06:56 AM GMT The cryptocurrency market continues to wobble amid rising geopolitical tensions between Israel and Iran. Ethereum (ETH) has taken a sharp 8% hit in the past 7 days, now hovering near $2,500. Altcoins have followed suit, and Stellar (XLM) is among those seeing a pullback. $XLM has dropped 9% over the week, extending its monthly losses to around 11%. But if you look closer, the recent decline might just be setting the stage for something bullish — a setup that closely mirrors Avalanche’s (AVAX) explosive recovery from late 2024.

Source: Coinmarketcap Fractal Suggests Bullish Reversal Ahead In 2024, AVAX was stuck in a long-term downtrend, gradually forming a textbook falling wedge pattern — a bullish reversal formation. Once it broke out, the price entered a brief consolidation within a descending channel before exploding upwards for a 132% rally.

AVAX and XLM Fractal Chart/Coinsprobe (Source: Tradingview) Now, XLM appears to be walking the same path. It too completed a falling wedge breakdown, followed by a breakout and is currently consolidating within a smaller falling wedge or bull pennant. Importantly, it's testing a critical multi-touch support level marked in the yellow zone — the same type of structure AVAX respected before its rally. Both the chart structure and the post-breakout behavior of XLM line up well with AVAX’s historical playbook, adding weight to the possibility of a bullish continuation. What’s Next for XLM? If the fractal holds true, Stellar may be gearing up for a significant move. A confirmed breakout from the current consolidation phase — ideally with a surge in volume — could push XLM toward the $0.54 zone, which aligns with the descending trendline and the measured move target from the earlier breakout. However, as always, caution is essential. A lack of volume or failure to hold support could invalidate the setup. In recent macroeconomic climate, with geopolitical uncertainty still looming, it’s wise to wait for confirmation before making bold bets. Disclaimer: This article is for informational purposes only and not financial advice. Always do your own research before making investment decisions in cryptocurrency.

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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