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Stellar (XLM) Price Approaching Triangle Resistance, Eyes Possible Uptrend

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • XLM formed a symmetrical triangle, nearing its apex.
  • A bullish breakout could confirm the start of a new uptrend.
  • The bearish scenario points to another drop, targeting $0.50-$0.60.

Since peaking in July 2023, Stellar (XLM) has formed a symmetrical triangle, signaling the potential for a breakout or continued correction.

The next move will clarify whether the current structure supports a new bull phase or further declines.

XLM Price Analysis 

After establishing support at $0.072 in January last year, the price of XLM started an uptrend, leading to its yearly high of $0.20 in July 2023. From this point, a long-lasting correction started with its 2024 peak of $0.16 in March.

This high-ended the second sub-wave X from the WXY pattern, and the Y developed. 

On July 4, XLM landed on $0.077, which spiked to $0.11 on July 18. A symmetrical triangle formed whose apex is now being approached.

There are two scenarios ahead, depending on whether the structure from July 2023 to July 2024 ended as a WXY correction or if two more waves will prolong it. 

XLM price analysis
XLMUSD at symmetrical triangle apex | Credit: Nikola Lazic/TradingView 

 

In the bullish case, the rise since July is the first uptrend in a starting bull phase. That would make a subsequent symmetrical triangle its first bull phase correction, and a breakout to the upside would provide confirmation. 

On the other hand, the recovery leading to the development of a symmetrical triangle is the second wave X in a WXYXZ corrective pattern, which will follow a rejection at the current resistance.

Another lower low would be its final wave Z, which could bring the price of XLM to $0.60 or  $0.50 before it ends. 

So which is more likely? 

XLM Price Prediction 

Zooming into the hourly chart, we can see that the rise since July made a five-wave advancement to the upside.

This could have been the first sub-wave in a higher-degree five-wave sequence, but a sharp decline followed, whipping out all the gains previously made on Aug. 5.

There is still a small chance that XLM will commence a bull phase, but even so, a breakout to the downside looks more likely.

Even if the structure from July 17 is corrective, we still need to see a C wave further down to the $0.77 area.

XLM price prediction
XLMUSD breakout to the downside move likely | Credit: Nikola Lazic/TradingView 

This is because the structure from Aug. 5 to Sept. 30 is most likely a three-wave correction as a B wave of the higher degree count, implying that the next move should be descending.

Whatever the case, we can conclusively say that there isn’t a bullish structure currently on the price chart, which would lead us to believe that XLM will proceed further to the upside. 

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.
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