- Stellar’s XLM shows breakout potential, with key resistance levels ahead.
- XLM’s head and shoulders pattern hints at a possible rally.
- Key support levels crucial for XLM’s price movement potential.
According to crypto analyst Ali Martinez, Stellar’s token (XLM) has been quietly moving under the radar while other assets like Bitcoin, Ethereum, and XRP have dominated headlines. Nevertheless, the recent XLM chart trends are likely to change to a bullish trend.
The 12-hour chart now displays a classical head-and-shoulders trend that betokens the possibility of the token breaking out in the near future. The left shoulder was made in February, the head was shown with a deep low in April, and the right shoulder is being made at this moment.
This pattern has a neckline of right under the $0.50. XLM is trading at approximately $0.38, which it has been able to keep during the last week. In case the token breaks the neckline of $0.50, there is a high possibility of a jump of the token, and the target could be $0.62, or even higher, to $0.7, $0.83, or even $1.
These levels coincide with the historical pivot zones, and hence, it is vital to know where XLM will move next.
Also Read: XRP Bull Run Hasn’t Begun Yet, Here’s When it Will Start and Target – Analyst Reveal
The Bullish Scenario for Stellar (XLM)
XLM’s bullish case remains intact as long as it holds above its key support levels. When the token continues to hold around $0.38 and the neckline is broken, the chances of reaching the higher targets are more obvious. The market mood is becoming better, and more cash is returning to altcoins, and this is the best time when XLM can pick up momentum.
The chart trend indicates that if XLM manages to overcome its resistance at the price of $0.50, then the coin will have a powerful surge towards the high price levels. The targets are founded on historical levels of price that have been concentrated into a liquidity point and give potential support or resistance.
Investors monitoring the asset are closely observing the behaviour of the price near the level of $0.50. An established breakout at this point may begin a more long-lasting upward trend.
The Risk of a Bearish Shift
However, the bullish trend would quickly lose its strength if the price fails to maintain the $0.30 range. If XLM loses its symmetrical pattern and drops below this critical point, it may indicate the finish of the rally, and the market may be exposed to additional losses.
What had appeared initially as a breakout would, in this instance, perhaps turn into another unsuccessful effort by the token, to the dismay of the bullish allurement.
However, the prevailing market situation, where liquidity is growing and the sentiment is improving, provides a good opportunity for XLM to demonstrate its potential. With positive momentum surrounding altcoins, Stellar could finally take center stage as the next altcoin to watch in the coming quarter.
Also Read: XRP Inverse Head and Shoulder Pattern 100% in Progress – See Next Targets
