Stellar (XLM) has been trading inside a descending channel since late December 2024. After a strong rally toward $0.45 in December, the price began to trend downward, forming lower highs and lower lows for several months.
By mid-April 2025, the XLM price dropped to a key support zone between $0.22 and $0.24. That area has held strong multiple times before, including just ahead of the major breakout in November. Once again, it acted as a reliable base, XLM bounced more than 15% from that low and is now trading at around $0.2702 at the time of this post.
Right now, the price is pressing up against the upper boundary of the descending channel, which sits around $0.28 to $0.29. That zone has acted as resistance several times before, and once again, it’s putting pressure on the price. Today’s daily candle shows a rejection wick at the top, which signals possible selling interest at that level.
So, it’s a key moment for Stellar. If the price fails to break above $0.29 with volume, it could fall back to the lower part of the channel again. But if Bitcoin price continues to show strength, currently holding around $94,000, a clean breakout could trigger a bullish shift.
With all this in mind, we asked ChatGPT to predict where XLM price might head next in May. Here’s what it suggested:
What you'll learn 👉
Pessimistic Scenario: $0.22 – $0.24
In a bearish outcome, XLM gets rejected at $0.29 and drops back toward the April low. Weak volume, Bitcoin dipping below $85K, or a lack of meaningful developments in Stellar’s ecosystem, could send the price down to retest the $0.22–$0.24 support. If that zone breaks, $0.20 becomes the next likely target.
Read Also: We Asked AI to Predict Ripple (XRP) Price in May
Realistic Scenario: $0.30–$0.32
If Stellar (XLM) price manages to break above $0.29 with consistent buying pressure, a slow grind toward $0.30–$0.32 becomes possible. Bitcoin staying stable or gradually climbing, plus increased usage of Stellar’s USDC and green bond tools, could support this move. It’s a range-bound, steady climb unless major momentum kicks in.
Optimistic Scenario: $0.38–$0.42
If Bitcoin heads toward $100K and XLM confirms a breakout above $0.30 with strong volume, the rally could extend much further. Strong headlines around Stellar’s enterprise growth, peer-to-peer energy settlements, or new tokenization pilots could bring renewed demand. In that case, XLM price might spike toward $0.38 or even $0.42, levels not seen since early 2022.
May could be a breakout month for Stellar if it clears the $0.29 wall. But as long as it stays inside the channel, the $0.22–$0.24 support zone remains just as important as the resistance. With Bitcoin in play and adoption headlines stacking up, traders should be watching both levels closely.
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