XLM’s price rebounds from $0.35, invalidating the bearish setup.
A golden cross on the chart confirms rising bullish momentum.
Can the breakout above $0.47 trigger a 35% rally for XLM?
Despite the alarm bells it rang in September, Stellar’s (XLM) price seems ready to turn things around. A few weeks ago, XLM’s price dropped to a multi-month low of $0.35 amid rising selling pressure.
Today, the altcoin has bounced off that low, indicating that the bearish setup may have been invalidated. But where exactly can XLM go from here?
XLM Locks in Bullish Setup
Between mid-September and the end of the month, XLM’s price struggled to gain traction. The altcoin failed to form clear lower or higher highs, remaining trapped within a descending channel that resulted in a lower-than-expected monthly return.
Now, though, momentum appears to be shifting. At the time of writing, XLM has formed a bull flag, a pattern that typically signals the potential end of a downtrend.
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As seen below, the cryptocurrency has bounced off the lower trendline of the flag and is now testing the upper boundary.
Adding to the bullish setup, the Exponential Moving Averages (EMAs) have printed a golden cross. This occurred as the 20-day EMA (blue) crossed above the 50-day EMA (yellow), reinforcing the bullish momentum behind it.
If this crossover holds, XLM’s price could be primed for a strong upside continuation. Should this trend persist, XLM bulls may continue to defend the support at $0.35.
Due to this, the cryptocurrency’s value might retest the resistance at $0.46.
XLM Price Analysis: Upswing Ahead
Examining the daily chart, XLM’s structure resembles the bullish thesis presented on the lower timeframes.
In this case, the altcoin appears to be on the verge of breaking out above the upper trendline of a symmetrical triangle. This formation signals the continuation of an uptrend after a period of consolidation.
The tightening price range suggests that buyers are gradually building strength, and a move above the triangle could confirm a breakout.
If that happens, it would likely open the door for an extended uptrend, reinforcing the broader bullish reversal that has been developing since late September.
Amid this setup, the Awesome Oscillator (AO) has flipped into the positive region, signaling that bullish momentum is building across the market.
If this trend continues, XLM’s price could break through the resistance at $0.47. If so, it could pave the way for a rally toward $0.54 at the 0.786 Fibonacci level, representing a potential 35% increase from its current value.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
