Here’s Why XLM Will Double by the End of the Year | Credit: Hameem Sarwar
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Key Takeaways
Stellar’s (XLM) price follows a descending resistance trend line.
The XLM price broke out from a descending wedge pattern.
Is the XLM correction over, and if so, how high will it go this year?
Stellar (XLM) has been trading under heavy bearish pressure, locked below a long-term descending resistance trend line since its 2021 peak.
After multiple failed breakout attempts, the price has regained its footing and is breaking out from a wedge.
This week’s movement could determine whether XLM confirms its bearish breakdown or sparks a powerful bullish comeback.
Critical Support Level
The weekly time frame shows that Stellar has fallen under a descending resistance trend line since its 2021 high in May 2021.
The price made three unsuccessful breakout attempts, the most recent in July. Stellar has fallen considerably since, briefly breaking down from the $0.39 horizontal support area.
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If this were to happen, it would suggest that the trend is bearish, since the area will act as resistance again.
However, this week’s XLM price movement gives hope. Stellar is currently attempting to create a bullish engulfing candlestick and complete a morning star pattern.
A close above $0.41 would complete this. If this were to happen, the XLM price would reclaim the $0.39 horizontal support area and invalidate the breakdown.
Momentum indicators are also at critical levels. The Relative Strength Index (RSI) is above 50, and the Moving Average Convergence/Divergence (MACD) is positive.
So, this week’s XLM movement is critical because a close above $0.39 will invalidate the breakdown and lead to another breakout attempt above the long-term resistance trend line.
Why is XLM Going Up Today?
The wave count suggests the XLM correction has ended, and the price has started its fifth and final wave, which will lead to a new all-time high.
Wave four ended with an A-B-C correction (red) inside a descending wedge. Today, Stellar broke out from the wedge, confirming that the correction is over.
The RSI crossed 50 alongside the breakout while the MACD made a bullish cross (black circle).
These are both signs that suggest new highs are likely. The main target for the top of the upward movement is at $0.62-$0.66.
The 1.61 external Fibonacci retracement resistance level creates the target’s lower portion, while the upper portion is made by giving wave five the same length as waves one and three.
If the XLM prediction comes true, the price is on the precipice of its strongest upward movement for this cycle.
Bullish XLM Trend
With momentum indicators aligning and wave analysis pointing to a fifth-wave rally, XLM is preparing for its strongest upward movement this cycle.
A decisive close above the $0.39–$0.41 range would invalidate the recent breakdown and set the stage for a breakout attempt toward $0.62–$0.66.
If confirmed, Stellar could be on the brink of one of its biggest upward movements yet.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
