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- XLM forms a bull flag and golden cross, signaling potential bullish momentum.
- Price could retest $0.46–$0.47 resistance and surge to $0.54.
- Weak buying pressure may trigger consolidation or a pullback to $0.30.
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After hitting a multi-month low of $0.35 in September, Stellar (XLM) appears to be regaining momentum. The altcoin’s recent rebound signals a potential bullish reversal, leaving traders wondering if the worst is behind the cryptocurrency.
Bullish Setup Emerges for XLM
During mid-to-late September, XLM struggled to gain traction, trapped in a descending channel that capped its monthly returns. Selling pressure pushed the price down, causing alarm among investors.
However, the tide seems to be turning. XLM has formed a bull flag, a pattern often indicating the end of a downtrend. The altcoin has bounced off the lower trendline and is now testing the flag’s upper boundary.
Adding to the optimism, a golden cross has formed on the Exponential Moving Averages (EMAs), with the 20-day EMA crossing above the 50-day EMA. This technical signal suggests that bullish momentum could continue, supporting the $0.35 level as strong support.
XLM Price Targets and Potential Upside
Daily chart analysis shows XLM forming a symmetrical triangle, signaling consolidation before a potential breakout. Buyers appear to be gradually gaining strength, and a move above the triangle could confirm an extended uptrend.
The Awesome Oscillator (AO) has entered positive territory, reinforcing the bullish sentiment. If momentum holds, XLM could retest resistance at $0.46–$0.47 and possibly surge toward the $0.54 Fibonacci level. This represents roughly a 35% increase from current levels, providing a promising opportunity for traders.
Risks to Watch
Despite the bullish signals, XLM is not without risks. A weakening buying pressure could stall the breakout, leading to prolonged consolidation. In a more bearish scenario, the price could retrace toward $0.30, emphasizing the importance of monitoring market dynamics closely.
Stellar’s recent technical developments suggest a potential shift from a bearish to bullish trend. With key indicators supporting upward momentum, XLM could be positioned for a meaningful recovery. Traders should watch resistance levels closely while staying mindful of possible pullbacks.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Stellar (XLM) Price Jumps 10% as October Bull Run Targets $0.50 Breakout
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
