Date: Sun, June 08, 2025 | 09:10 AM GMT
The cryptocurrency market is bouncing back strongly after Thursday’s sharp sell-off, which briefly dragged Bitcoin (BTC) to a low of $100,430 and Ethereum (ETH) to $2,387. However, the tide has turned—BTC has reclaimed levels above $105,500, while ETH has recovered to around $2,515. This broader rebound is now lifting sentiment across altcoins, including Stellar (XLM).
XLM is back on the green track and a closer analysis of the chart reveals that the asset may be preparing for a stronger continuation to the upside.
Technical Patterns Hint at Upside Momentum
The 4-hour chart for XLM shows a breakout from a falling wedge formation—a bullish pattern that often precedes trend reversals. Adding further weight to the bullish case is the formation of a Bearish Cypher harmonic pattern, a setup that typically signals a short-term rally before entering a potential reversal zone.
The structure began with a top at $0.3123 (point X), followed by a decline to $0.2589 (point A). XLM then retraced to $0.2762 (point B), before dipping again to $0.2525 (point C). This recent recovery from point C marks the beginning of the final leg toward point D.
The projected D leg lies between $0.2995 and $0.3123, aligning with the 78.6% Fibonacci retracement of the XC leg and the 100% Fibonacci extension. These levels serve as potential resistance and completion zones for the harmonic pattern. From its current price near $0.2657, a move to the D-zone implies a potential upside of 12% to 17%.
What’s Next for XLM?
A confirmed breakout from the falling wedge, combined with a well-respected harmonic structure, points to the possibility of XLM continuing its recovery run. If buyers manage to lift prices into the $0.2995 to $0.3123 range, it would validate the harmonic setup. However, traders should be aware that this zone could also invite profit-taking and short-term selling pressure, as is often seen near harmonic completion levels.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
The opinions and market insights shared on CoinsProbe represent the views of individual authors based on prevailing market conditions at the time of publication. Cryptocurrency investments carry significant risk and volatility. Readers are encouraged to conduct their own research and seek professional financial advice before making investment decisions. CoinsProbe and its contributors do not accept responsibility for financial losses or decisions made based on published content.
CoinsProbe may publish sponsored articles, affiliate links, or promotional collaborations. All sponsored material is clearly labeled to maintain transparency with our audience. Our editorial decisions remain fully independent, and advertising partnerships do not influence reviews, rankings, or published opinions.
Since 2023, CoinsProbe has delivered reliable insights on cryptocurrency, blockchain, and digital assets. Our content is created by experienced researchers and analysts who follow strict editorial standards focused on accuracy, transparency, and credibility. Every article is carefully reviewed and verified using trusted sources and current market data. We provide unbiased analysis and timely updates covering everything from emerging crypto projects to major industry developments.
