Stellar (XLM) Approaches Breakout Zone but Resistance Remains Strong

Key Takeaways

• XLM’s price has been swinging between $0.31 and $0.36 without any breakout or breakdown.
• The token is below the Ichimoku Cloud, indicating resistance that could hinder an uptrend.
• Major levels to watch range from $0.30 to $0.37, as these could determine the next move.

Stellar’s (XLM) price has remained between $0.31 and $0.36 for the past week.

This price action differs from how the altcoin performed in the last quarter of 2024, when the price reached $0.56.

As it stands, XLM is approaching a critical juncture as it tests the upper boundary of a symmetrical triangle pattern.

A decisive breakout could ignite a fresh rally, but hesitation at resistance raises the risk of a rejection. With market sentiment mixed and technical indicators offering conflicting signals, will XLM push higher or face another setback?

XLM Trades Sideways

Over the past 30 days, XLM has dropped 22%, trading within a symmetrical triangle on the daily XLM/USD chart.

This pattern, formed by converging trendlines with similar slopes, signals a consolidation phase that could lead to a breakout in either direction.

Currently, XLM is testing the lower boundary of the upper trendline at $0.34, with the triangle’s peak at $0.49 and its swing low at $0.31.

However, the Relative Strength Index (RSI) remains below the 50.00 neutral midpoint, indicating weak bullish momentum.

Considering this setup, XLM’s price may struggle to reach the upper trendline’s peak at $0.49.

XLM Price Analysis

Furthermore, the 4-hour chart presents a different outlook. On that timeframe, XLM’s price trades in an ascending channel after breaking out of the downtrend that sent it from $0.36 to $0.31.

Despite the rising channel, XLM still trades below the Ichimoku Cloud, an indicator that identifies support and resistance levels, momentum, and trend direction.

When the cloud is below the price, it indicates support, indicating that the price might increase. However, as of this writing, the cloud is above XLM’s price.

Should this remain the same, the token might fail to break the upper-level resistance at $0.37.

If this is the case, the cryptocurrency is likely to decline toward $0.30, and the anticipated uptrend might have been invalidated.

Key Price Levels to Watch

Meanwhile,, key price levels to watch out for could determine where XLM could move next.

First, the 0.236 Fibonacci retracement level is one to watch out for as it is a key support. If XLM’s price drops below $0.30, a price crash to $0.26 could be next.

In addition, the 0.618 Fib level is also important. If buying pressure increases, XLM might rise past $0.35, which could push it above the resistance at $0.37. If broken, this could send XLM’s market value to $0.40.

However, as it stands, the altcoin is likely to keep consolidating as it has over the last few weeks.