Stellar has been consolidating inside a descending wedge pattern that traders often view as a bullish reversal.
With price action tightening for several months, analysts are closely monitoring resistance at the upper boundary. At $0.36, the token trades near a key inflection point, where a breakout could set the stage for the next major rally.
Wedge Formation Builds Anticipation
According to analyst Steph Is Crypto on X, the wedge structure signals a potential breakout that could drive Stellar toward the $0.55–$0.70 range in the coming months. The chart highlights two converging trendlines, with price repeatedly rejecting resistance yet holding support, reflecting steady coiling action before a decisive move.
A dotted line on the analyst’s projection outlines a breakout trajectory, fueling optimism that the July rally may resume.
Source: X
This setup echoes historical cases where descending wedge breakouts often trigger sharp upward expansions as bearish exhaustion gives way to renewed buyer interest.
The analysis stresses the importance of confirmation with a daily close above the wedge, as false breakouts remain a common risk. If resistance is breached, momentum could quickly swing in favor of bulls with volatility climbing significantly.
Market Data Shows Stability
Additional data from BraveNewCoin highlights strong fundamentals underpinning Stellar. The asset currently trades at $0.36 with a market cap of $11.58 billion and a 24-hour trading volume of about $214.8 million. While down 0.22% over the last day, liquidity remains robust, ensuring continued participation across global exchanges.
Source: BraveNewCoin
The available supply stands at 31.8 billion tokens, balancing accessibility with established scarcity in the market. Daily trading averages show consistent turnover, helping stabilize price action even during consolidation phases.
Forecasts for September 2025 point to a narrow trading range between $0.35 and $0.37, maintaining stability within a key accumulation zone. By December, expectations place the average price closer to $0.40, supported by steady inflows and persistent network growth.
These conditions reinforce the view that the asset is not only consolidating but also preparing for a larger move once technical confirmation aligns with market demand. Strong supply dynamics and liquidity provide the foundation for renewed upside momentum.
Technicals Suggest Breakout Test Ahead
Short-term signals reveal a market still under bearish pressure. The MACD remains negative with readings at -98.88M against a signal line of -29.55M, while the histogram trends lower at -69.32M, all pointing to ongoing weakness. This suggests that sellers continue to dominate, at least until stronger buying pressure emerges.
Source: TradingView
The Relative Vigor Index (RVI) sits at 39.26, well below its moving average of 53.99, underscoring a lack of conviction among bulls. Values under 50 generally confirm bearish control, and the downward slope of the indicator supports the view that further consolidation is possible before any rally attempt.
Traders are advised to watch closely for a confirmed breakout above resistance, which could mark the turning point toward higher levels.