• XLM price is on the verge of a breakout as it approaches a critical supply barrier.
  • Stellar is traversing a symmetrical triangle pattern, hinting at a quick 20% upswing.
  • A long-term outlook reveals XLM could surge 120% to hit $1 under exceptional circumstances.

The XLM price is meandering inside a technical pattern vying to slice through the barrier present ahead.

XLM price gears up for higher high

The XLM price reveals a symmetrical triangle pattern when the multiple lower highs and higher lows since January 27 are connected using trend lines. This technical formation forecasts a 62% move after successful confirmation of a breakout.

For now, Stellar looks primed after a bounce from the 50-day Simple Moving Average (SMA). If the bullish momentum persists, the XLM price could produce a decisive close above the immediate supply barrier at $0.50, coinciding with the 78.6% Fibonacci retracement level.

Following this, the remittances token could pierce the technical formation’s upper trend line at $0.54. This move would signal the start of a bullish wave. If a spike in buying pressure ensues, the XLM price could surge 25% toward the first breakout line at $0.67, set up by the Momentum Reversal Indicator (MRI).

Subsequent areas of interest include the 127.2% and the 141.4% Fibonacci extension levels at $0.74 and $0.81, respectively. Clearing these levels might open up the path to the intended target at $0.87.

XLM/USD 1-day chart

XLM/USD 1-day chart

A different perspective on the bullish outlook for Stellar can be seen in the chart below. From late November 2020 to date, the XLM price has installed three higher highs and two lower lows.

An ascending parallel channel is revealed when the swing points are connected using trend lines. Interestingly, each bounce from the lower trend line that sets up the next swing high sees a 200% uptrend. The retracement that follows after reaching the upper trend line averages around 45%.

Since the XLM price has already retraced 45% from the recent highs at $0.60, the logical thing to expect here would be a massive blast off. If something similar were to happen, the remittances token could surge 120% to hit the $1 mark.

XLM/USD 1-day chart

XLM/USD 1-day chart

Stellar’s bearish scenario could evolve if the symmetrical triangle’s lower trend line at $0.37 is breached. In this case, the XLM price could decline 11% toward the MRI State Trend Support at $0.33.

If the sellers push the cryptocurrency beyond $0.33 for an extended period, it would solidify the bearish outlook and open up the altcoin for more downside.


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 reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead. 

More Bitcoin News
GIGA investor loses $6M to phishing scam via fake Zoom link

GIGA investor loses $6M to phishing scam via fake Zoom link

On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.

More Cryptocurrencies News
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.

More Cryptocurrencies News
BNB: Bullish technical pattern validated, eyes all-time high

BNB: Bullish technical pattern validated, eyes all-time high

Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.

More Binance News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

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