The cryptocurrency market continues to face challenges amid rising geopolitical tensions, particularly between Israel and Iran. Recent events have made it especially tough for many altcoins.
Market State
Recent events have led to falling prices for many cryptocurrencies. Ethereum (ETH) has dropped 8% in the past week and is now trading around $2,500. Altcoins have similarly followed suit, with **Stellar (XLM)** encountering a 9% drop over the week and approximately 11% for the month.
Stellar (XLM) Analysis
Despite recent losses, Stellar (XLM) may be on the cusp of a significant move. The current chart structure mirrors that of a reversal model similar to Avalanche (AVAX) at the end of 2024. XLM has formed a technical breakout within a falling wedge and is now establishing a smaller bullish pattern.
Outlook for Stellar (XLM)
If the structure holds, Stellar is preparing for a significant move. A breakout from the current consolidation phase with increased volume could push XLM towards the $0.54 level. However, caution is essential, as a lack of volume or failure to maintain support could invalidate this scenario.
The cryptocurrency market remains under pressure, and while there are signs of a potential recovery for Stellar, the uncertainty in the current macroeconomic landscape requires careful and thoughtful investment approaches.
