Date: Mon, April 21, 2025 | 06:58 AM GMT
In the cryptocurrency market over the last week, major altcoins are showing signs of a rebound after enduring a sharp correction since the start of this year. In this relief rally, Stellar (XLM) is coming back onto the green track with noticeable weekly gains.
But there’s a shift in momentum brewing as a classic harmonic pattern now hints that this rebound could rise even further.
Source: Coinmarketcap
Harmonic Pattern Signals More Upside Move
The daily chart for XLM reveals the formation of a Bearish Gartley Pattern, but as of now, there’s still plenty of upside room left as the token approaches point D to complete the structure.
XLM’s sharp decline began around March 2, after it failed to hold above the $0.3754 resistance level (marked as point X). Since then, the token lost nearly 47% of its value, eventually bottoming out near $0.20 on April 7 (point C).
Stellar (XLM) Daily Chart/Coinsprobe (Source: Tradingview)
However, since hitting that low, XLM has shifted gears. The recent price action suggests it is now completing the CD leg of the pattern — potentially setting the stage for a continuation of this rebound.
Looking at the current setup:
- XLM is trading near $0.2502, steadily climbing.
- MACD is printing early bullish momentum, with a bullish crossover happening below the zero line — a classic sign of trend reversal brewing.
- The pattern’s target — point D — sits around $0.3436, aligned with the 78.6% Fibonacci retracement of the X-A leg.
If the pattern fully plays out, XLM could gain around 34% from the current levels.
What’s Ahead?
However, caution is still advised: typically, bearish reactions occur once harmonic patterns like the Gartley complete. As XLM approaches point D, profit-taking and volatility could spike, meaning a strong reaction — either a short-term pullback or consolidation — is very possible.
For now, though, the path seems tilted upward, and XLM bulls might have a window to ride this momentum toward higher levels.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
