Stellar (XLM) Price Analysis
Stellar (XLM) Price Analysis: Potential for a 20% Surge?
The price of Stellar (XLM) has experienced a significant downturn over the past week, aligning with the broader decline in the altcoin market. However, technical indicators suggest a potential bullish reversal, with analysts forecasting a notable price movement in the coming days.
Analyst Predicts a 20% Upswing for XLM
Crypto analyst Ali Martinez recently shared insights on X, indicating that Stellar might be on the verge of a 20% price surge. The basis for this prediction stems from the formation of a descending triangle pattern observed on XLM’s 1-hour price chart.
A descending triangle typically signals bearish momentum, characterized by a series of lower highs converging towards a horizontal support level. However, in certain scenarios, it can also indicate a trend reversal, leading to a bullish breakout.
Key Levels to Watch
At present, Stellar’s price has rebounded from its support level at approximately $0.274, moving toward the $0.28 region. According to Martinez, if XLM successfully breaks through the resistance zone between $0.28 and $0.29, it could trigger an upward movement of at least 20%, pushing the price toward $0.33.
This price target is derived from measuring the vertical height of the descending triangle and adding it to the breakout level. If this scenario unfolds, it could mark the beginning of a broader bullish phase for Stellar.
Long-Term Resistance and Market Outlook
Looking beyond the short-term, Martinez highlights $0.55 as a crucial resistance level for Stellar’s long-term bullish prospects. Historical price action shows that XLM has struggled to surpass this mark multiple times since 2018. However, the more frequently a resistance level is tested, the weaker it becomes, increasing the likelihood of a breakthrough in the future.
Current Market Performance
As of now, Stellar is trading around $0.276, reflecting a 1.6% decline in the past 24 hours. Over the past week, XLM’s value has dropped by more than 11%, according to CoinGecko data.
While short-term volatility remains a factor, the potential for a bullish breakout provides traders and investors with an optimistic outlook. If XLM successfully overcomes key resistance levels, it could pave the way for further gains in the altcoin market.
