Key Takeaways
XLM’s price could soar by 25% and reach the $0.58 level in the future if the asset clears the $0.463 hurdle.
After nearly a week of sideways movement, Stellar [XLM] was mirroring Ripple’s [XRP] bullish patterns.
This formation has drawn expert attention, suggesting the asset is poised for potential upside momentum.
Notably, a renowned crypto analyst shared a post on X (formerly Twitter) highlighting a bullish inverted head and shoulders pattern.
In the post, the expert noted that a breakout and a candle closing above the $0.50 mark could propel XLM to the $0.77 level.
Mapping upcoming levels
At press time, XLM was trading at $0.4532, reflecting a 2% gain over the past 24 hours.
This level remains a critical resistance zone, where the asset has repeatedly encountered selling pressure and downward momentum.
Despite its sluggish performance over the past week, trader and investor participation has surged.
According to CoinMarketCap, XLM’s 24-hour trading volume jumped 51% compared to the previous day. This spike in trading volume, coupled with the price uptick, suggests that XLM may be gearing up to challenge its current resistance.
Technical analysis from AMBCrypto reveals that XLM has formed a chart pattern similar to XRP on the daily timeframe.
Both assets have broken out of a bullish flag-and-pole formation, yet continue to struggle with an inverted head and shoulders pattern, a setup that typically signals further upside.
Based on recent price action and historical patterns, XLM’s sideways trend is likely to end only if it breaks above $0.463.
Should this breakout occur, XLM could rally by as much as 25%, potentially reaching the $0.58 level in the near future.
Source: TradingView
Technical indicators and on-chain insights
At the time of writing, technical indicators were flashing a mixed sentiment.
XLM’s Relative Strength Index (RSI) stood at 60. This indicated a potential for further upside momentum if buying pressure continues.
In the meantime, XLM price was at the upper boundary of the Bollinger Bands, indicating strong bullish pressure but also signaling that the asset may face short-term resistance or a potential pullback.
Given the current market structure, it appears that traders are closely following market trends.
CoinGlass revealed that XLM’s major liquidation levels were at $0.4461 on the lower side and $0.4737 on the upper side.
Source: CoinGlass
Furthermore, traders are heavily over-leveraged at these levels, with $4.41 million worth of long positions and $7.79 million worth of short positions.
This makes it clear that traders hold a bearish outlook, believing the asset is now poised for a price dip.
