XLM price breaks out of descending channel pattern, reversing the bearish trend and opening the path for a potential massive upside move

XLM price has finally broken out of a prolonged descending channel pattern after experiencing a 65% downside move. This breakout reverses the bearish trend and opens the path for a potential massive upside move.

Key Insights:

* XLM price has finally broken out of a prolonged descending channel pattern.

* This breakout follows a 65% downside move and could open the path for a potential massive upside move.

* In the past few days, market sentiment has favored XLM.

* At press time, XLM price was trading up by over 5.10% in the past 24 hours.

* However, its trading volume dropped by 10% during the same period.

Yesterday, we discussed the possibility of an XLM breakout, which could be confirmed by a daily candle closing above the pattern. This breakout pattern is crucial as it signals a reversal of the bearish trend.

If this breakout occurs, it may trigger a 30% rally, pushing the price towards $0.365 in the coming days.

If the price fails to hold the breakout and forms a bearish engulfing candlestick pattern, then this bearish thesis will be invalidated, and the asset could turn bearish again. The token could revisit the lower boundary of the pattern, which provides a strong support level.

According to expert technical analysis, XLM price appears bullish and is on the verge of a massive upside.

On the daily chart, Stellar traded within a bearish channel pattern since November 2025, losing over 65% of its value. However, after hitting a key support level at $0.20, the price began a strong recovery, surging by 35%.

This upward movement from the lower boundary to the channel’s upper boundary led to a breakout at press time.

If XLM closes a daily candle above $0.275, it could trigger a strong upward move. This may lead to a 30% rally, pushing the price toward $0.365 in the coming days.

However, suppose the XLM price fails to hold the breakout and forms a bearish engulfing candlestick pattern. In that case, this bearish thesis will be invalidated, and the asset could turn bearish again. The token could revisit the lower boundary of the pattern.

The bullish sentiment in Stellar has strengthened due to more than just the pattern breakout. Moving above the 200-day EMA in the daily timeframe has further reinforced the uptrend. This indicated a strong bullish trend and could support the asset’s upward momentum.

According to the XLM Exchange Liquidation Map from on-chain analytics firm Coinglass, traders have shown strong interest and confidence in the asset over the past seven days.

They are over-leveraged at the $0.2558 level on the lower side (support), with $5.84 million worth of long positions.

According to the XLM Exchange Liquidization Map from on-chain analytics firm Coinglass, traders have shown strong interest and confidence in the asset over the past seven days.

They are over-leveraged at the $0.2558 level on the lower side (support), with $5.84 million worth of long positions.

The potential reason behind this low participation is that the daily candle closed just above the pattern. This may only partially confirm a successful breakout.

Key takeaways:

* XLM price broke out of a descending channel pattern, signaling a potential reversal of the bearish trend.

* The breakout could open the path for a potential massive upside move.

* Despite the price surge, there was low participation from investors and traders, as evidenced by the drop in trading volume.

* On-chain metrics, such as the Long/Short ratio and the Exchange Liquidation Map, also indicated strong bullish sentiment among traders.

This breakout pattern is crucial as it signals a reversal of the bearish trend. If this breakout occurs, it may trigger a 30% rally, pushing the price towards $0.365 in the coming days.

However, suppose the XLM price fails to hold the breakout and forms a bearish engulfing candlestick pattern. In that case, this bearish thesis will be invalidated, and the asset could turn bearish again. The token could revisit the lower boundary of the pattern, which provides a strong support level.

According to expert technical analysis, XLM price appears bullish and is on the verge of a massive upside.

On the daily chart, Stellar traded within a bearish channel pattern since November 2025, losing over 65% of its value. However, after hitting a key support level at $0.20, the price began a strong recovery, surging by 35%.

This upward movement from the lower boundary to the channel’s upper boundary led to a breakout at press time.

If XLM closes a daily candle above $0.275, it could trigger a strong upward move. This may lead to a 30% rally, pushing the price toward $0.365 in the coming days.

However, suppose the X