• Stellar bulls are in the last phase of completing a bullish triangle.
  • As XLM price is getting squeezed against the base ($0.40), expect a quick breakout of 12%.
  • After taking a breather, expect another 10% of profits to follow. 

Stellar (XLM) is still respecting the bullish triangle where lower highs are playing out, and on the topside, the price is getting squashed up against $0.40 resistance level each time it meets it. With momentum building, a quick pop through the top could happen with XLM price moving quickly towards $0.46. Although some profit-taking could slow momentum early on, expect the rally to have legs, and probably head towards $0.51.

XLM price rally holds more potential

XLM price has been respecting the bullish triangle that formed in October for quite a few weeks now – excepting one false breakout. Bulls flocked in massively on October 15, at the level of the 55-day Simple Moving Average (SMA) where it crossed the green ascending trend line. 

The shelf of resistance at $0.40 has kept price action muted for quite some time now. A few false breakouts were each time quickly reversed by bears defending this level since June 05. But with higher lows and XLM price being squeezed against $0.40, an outbreak looks imminent.

XLM/USD daily chart

XLM/USD daily chart

XLM price may see more bulls flocking in for a quick pop higher above $0.40. Expect some quick profit-taking at $0.46. From there, XLM price will probably correct back to $0.40 where it will test that level for support.

XLM price will probably then bounce off $0.40 under new entries of fresh buying volume, that will see the price ramp up towards $0.51. At that level the rally will probably stall, as $0.51 falls in line with the monthly R2 resistance level and historical high from May 24. At that point, XLM will probably make a pattern like the previous outbreak and will fade back to $0.46 for a support test before reattempting to break $0.51.

Should bulls fail to break $0.40, expect bears to push price-action back down, or let bulls enter into a bull trap before bears run price back down. A green ascending trend line break will push XLM price back to $0.30 and $0.25.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?  

More Litecoin News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.

More Bitcoin News
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.

More Cryptocurrencies News
Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.

More Bitcoin News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP