Here's Why XLM Could Surge 50% in October | Credit: Hameem Sarwar
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Key Takeaways
Stellar (XLM) follows a descending resistance trend line.
The XLM price has created a bullish double bottom pattern.
Can XLM confirm its pattern and break out to new highs?
While Stellar (XLM) has decreased under a diagonal resistance trend line for 75 days, the correction is nearing its end.
After creating a bullish pattern over the past 30 days, the XLM price is poised for a breakout and a potential bullish trend reversal.
A 50% surge could occur if that happens, taking XLM to a new cycle high. Let’s examine the charts and see how likely that is.
Stellar’s Bullish Pattern
The daily time frame chart shows that XLM has fallen under a diagonal resistance trend line since its cycle high of $0.52 on July 18.
Stellar’s decline took the price to the $0.35 level twice, at the end of August and September.
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The recent bounce confirmed a double bottom, a bullish pattern often leading to a trend reversal.
In addition to the bullish pattern, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have created bullish divergences, legitimizing the double bottom.
When combined with the double bottom, they confirm that the XLM prediction is bullish.
Once the price breaks out, it could quickly surge to $0.63-$0.66, reaching the 1.61 external Fibonacci retracement and giving wave five the same length as waves one and three combined.
The confirmed double bottom, coupled with bullish divergences on the RSI and MACD, strengthens the case for a breakout above the 75-day resistance line.
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.
