• XLM price is consolidating in a bullish pennant pattern, suggesting a massive 60% run-up soon.
  • A decisive 6-hour candlestick close above $0.51 is necessary to break out from the bullish pennant.
  • A bearish breakdown from the pennant could result in a downswing to the hourly 100 SMA at $0.41.

XLM price saw a 160% upswing between late January and mid-February to hit a new all-time high at $0.60. However, since hitting the record level, Stellar has slipped into a consolidation phase.

Depending on its close relative to a bullish pennant pattern drawn in the six-hour chart, XLM could either surge massively or drop to an immediate support barrier.

XLM price prepares for a higher high

XLM price shows a bullish bias due to the formation of a bullish pennant pattern. The 160% surge between January 28 and February 13 formed the “flag pole,” while the consolidation since then resulted in the “pennant.” 

This continuation pattern forecasts a 60% upswing to $0.82, determined by measuring the flag pole’s length and adding to the breakout at $0.51.

Therefore, a six-hour candlestick close above $0.51 is imperative. 

XLM/USDT 6-hour chart

XLM/USDT 6-hour chart

Adding credence to this bullish outlook is the increase in developer activity metric. This metric shows a 45% increase in the last six days while the price has remained relatively the same, suggesting that it might not be priced-in.

Usually, investors perceive a spike in this metric as bullish as it could mean a new update or developmental rollout for the project. 

Stellar developer activity chart

Stellar developer activity chart

On the other hand, a breakdown of Stellar price below the six-hour 50 moving average (MA) at $0.49 would be the first indication of mounting selling pressure. Moreover, a six-hour candlestick close below the pennant at $0.46 would invalidate the bullish outlook and suggest the dawn of a downtrend. 

This resulting selling pressure would trigger a 10% correction up to the 100 six-hour MA at $0.41.


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

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

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