XLM Bulls Target 110% Rally—Is Stellar Set to Soar?

• A Stellar price move above $0.49 could target $0.84, representing a 110% rally, with interim resistance at $0.63 likely to prompt some profit-taking.
• For an upside breakout, key technical signals include the RSI maintaining above 50 and the MACD showing a bullish crossover.

Stellar’s (XLM) price stands at $0.3988 on Thursday after falling by 3.6% over the last two days. The price action of the crypto is inside a symmetrical triangle, and a breakout to the upside will be significant if resistance is taken out. The break above $0.49 could send XLM to its technical target at $0.84, which is 110% above here.

Symmetrical Triangle Signals Possible Breakout For Stellar Price

The XLM price chart shows a symmetrical triangle pattern formed by connecting multiple highs and lows with converging trendlines. There has been ongoing development since late November where the price is gradually tightening within the structure. The pattern indicates a bullish bias as the breakout target is calculated by determining the distance from the first notable high to the first significant low and projecting it from the breakout point.

XRP/USD Daily Chart Source: TradingView

On Monday, the Stellar price held at the bottom trendline of the triangle, and it was unable to go down any further. From Monday to Wednesday, XLM lost over 3.4%. By Thursday, the price began the recovery move, trading below the $0.40 mark.

If XLM’s price is able to break above resistance at $0.49 on a confirmed close, the symmetrical triangle has a technical target that would see the price move up to $0.84, as discussed earlier. However, the price will likely face resistance at $0.63, the high on November 24, which can be a profitable zone for sellers to take profit. This will be a 58% jump from the current price and likely cause a brief consolidation before a further move.

Bullish Indicators Of The Upside Move

There are a couple of technical indications that need to be in sync with the positive direction for the upside move to occur. Firstly, the Relative Strength Index needs to stay above the neutral point of 50 on the daily chart, signaling continuous buying interest. The Moving Average Convergence Divergence also needs to show a bullish crossover to help the upside break out.

While a bullish move could be expected, a bearish scenario remains on the cards if Stellar price fails to hold above key support levels. A break below the lower trendline of the symmetrical triangle coupled with a daily close below the 200-day Exponential Moving Average at $0.35 could trigger a downward move. With losses pushing XLM closer to a December 20 low of $0.31, the upside pattern could potentially be invalidated while increasing the outlook for downside risks.

In a recent update, we covered Stellar validators have proposed a new upgrade to substantially increase the ledger’s read/write limits and enhance the event size limit. If successfully implemented, this upgrade is expected to improve longer swap routes and optimize token exchange rates on Soroswap.