Stellar (XLM) Eyes Breakout: 25% Rally on the Horizon?
Stellar (XLM) Primed for Potential Upside
Stellar (XLM) is exhibiting bullish patterns, signaling a potential rally. Technical analysis suggests a breakout could lead to significant gains.
Key Points:
- XLM's price could increase by 25%, potentially reaching $0.58 if it surpasses the $0.463 resistance level.
- The current trading pattern mirrors that of XRP, suggesting similar upward momentum.
A well-known crypto analyst on X highlighted a bullish inverted head and shoulders pattern. A break and close above $0.50 could propel XLM towards $0.77.
Analyzing XLM's Current Levels
As of press time, XLM is trading around $0.4532, a 2% increase over the last 24 hours. This level acts as a critical resistance point where selling pressure has been observed.
Despite recent sideways movement, there's been a notable surge in trading activity. CoinMarketCap data indicates a 51% jump in 24-hour trading volume, suggesting growing interest and a potential challenge to the current resistance.
Technical analysis indicates that XLM has formed a chart pattern akin to XRP on the daily timeframe. Both assets have broken out of a bullish flag-and-pole formation but are still grappling with an inverted head and shoulders pattern, which typically precedes further gains.
Based on current price action and historical patterns, a definitive move beyond $0.463 is needed to end the sideways trend. A successful breakout could trigger a rally towards the $0.58 mark, representing a 25% increase.
Technical Indicators and Market Sentiment
Technical indicators currently paint a mixed picture. XLM’s Relative Strength Index (RSI) is at 60, indicating potential for further upside if buying pressure continues.
However, the price is near the upper boundary of the Bollinger Bands, suggesting strong bullish pressure but also the possibility of short-term resistance or a pullback.
CoinGlass data reveals major liquidation levels at $0.4461 (lower side) and $0.4737 (upper side). Furthermore, trader positioning shows a slightly bearish sentiment, with $4.41 million in long positions versus $7.79 million in short positions, indicating expectations of a price dip.