Technical analysis by SupertradeOfficial about Symbol XLM: Buy recommendation (6/10/2025)

XLMUSDT is currently forming a bullish reversal structure on the 4-hour chart. After a prolonged downtrend, price has established a support base around the $0.2570 level. This zone has acted as a key support, rejecting downside attempts multiple times, and creating a potential accumulation floor.The price is now pushing above short-term consolidation, hinting at a possible breakout from the recent range. This range behavior, followed by an early higher low formation, indicates that buyers may be stepping in more aggressively.Support ZoneThe support zone around $0.2570 to $0.2585 is structurally significant. Price dipped into this level twice and was strongly rejected both times. The most recent low around this zone created a long wick, suggesting liquidity grab and potential trend reversal.This zone now serves as a clear invalidation point for the bullish setup. A break below would likely invalidate the long bias and open the door for a deeper retracement.Resistance Levels and Take-Profit TargetsThe chart identifies two major resistance levels.The first resistance is around $0.2902, marking Take Profit 1 (TP1). This level acted as resistance multiple times in the past and should be the first area where selling pressure could return.The second resistance, marked at $0.3109 (TP2), is a higher timeframe resistance zone. It was previously a strong ceiling before the drop in early June. If the momentum is sustained, this area becomes a logical final target for the current bullish swing.Supertrend ConfirmationThe Supertrend indicator has recently flipped green, supporting the bullish bias. The flip occurred after price reclaimed the mid-range, and the price is now consolidating just above the Supertrend baseline.This is a classic bullish signal on the 4H chart, particularly when it aligns with a structural bottoming pattern and a clean risk-reward setup.Risk–Reward SetupThe current setup offers a favorable risk-to-reward ratio of 2.49. Entry is positioned near $0.2723, with the stop-loss placed just below the support zone at $0.2570. This limits downside risk to approximately 5.6%.The upside, on the other hand, stretches up to $0.3109, offering potential gains of around 14%. Even the first target at $0.2902 offers a decent 6.5% return, making this trade attractive for swing traders aiming for a mid-term move.Momentum Shift and Potential BreakoutWhat strengthens the bullish case further is the price action attempting to break out of the recent lower high zone. There is a clear effort to reclaim momentum, and a successful 4H candle close above $0.2770 would signal a clean breakout and continuation.Earlier price action shows signs of accumulation, including a liquidity sweep below $0.2570 followed by strong rejection — a common reversal pattern in crypto markets.