- XLM forms bullish pattern, mirroring XRP’s earlier explosive rally.
- Break above $0.50 could trigger Stellar’s push toward $0.77.
- Decline to $0.4454 keeps price near critical resistance zone.
According to crypto analyst Ali, Stellar (XLM) is showing a bullish inverse head-and-shoulders formation that closely resembles the price setup seen in XRP earlier this year. The left shoulder is from January, the head was shaped late in May, and the right shoulder has been shaping itself since August.
This formation has attracted attention since such patterns in the past have resulted in significant rallies. At the moment, the price of XLM is at $0.4454, which represents a 2.07 percent decrease in the last 24 hours.
Even with the pullback, the price is still near the $0.50 neckline, a critical resistance level that would open the door to additional gains should it be breached on substantial trading volume.
The escape of XRP out of a nearly identical configuration earlier in the year sparked off a double-digit surge, and speculation was rife that XLM would do the same.
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Fibonacci Levels Suggest Strong Upside Potential
Analysis using Fibonacci extension levels points to potential upside targets if a breakout occurs. The 1.618 level sits at $0.71, while the 1.786 mark is near $0.77, providing clear milestones for bullish traders to watch. These levels would only become likely if momentum builds significantly once the neckline is breached.
Failure to push past $0.50 could shift market sentiment toward caution, with a possible pullback toward $0.40 or even $0.36. These areas have acted as strong support in previous downturns and could serve as stabilizing points before any renewed rally attempts.
Source: Ali_Chart
The resemblance between XLM’s current chart and XRP’s earlier bullish move is generating significant interest among market participants.
Traders are now watching closely for a daily close above the neckline, as this would confirm the pattern and increase the probability of a sustained upward move toward the projected targets.
Stellar’s price action is approaching a decisive moment, with the $0.50 resistance acting as the gateway to higher levels. A confirmed breakout could set the stage for a rally toward $0.71 and $0.77, while rejection at this point may lead to a retest of lower supports.
The coming sessions are likely to determine whether XLM can replicate XRP’s earlier breakout momentum.
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