The daily Stellar Lumens (XLM) chart highlights a strong 5-wave impulse move, peaking at a yearly high of $0.63 (Wave v) on Nov. 24 before entering a corrective phase.
The price consolidates within a descending wedge, suggesting the (a)-(e) pattern represents a corrective structure, potentially setting up a bullish reversal.
XLMUSD in a descending triangle | Credit: Nikola Lazic/TradingView
The descending triangle aligns with lower highs and lower lows, compressing price action near $0.42 support.
Breakout probability increases as XLM nears the triangle’s apex, indicating potential upward momentum.
The daily chart Relative Strength Index (RSI) remains neutral but has stabilized, signaling a cooldown from overbought levels and increasing the likelihood of a trend reversal.
A bullish breakout above the wedge’s resistance could push XLM toward prior highs. The first resistance lies near $0.50, followed by higher targets at $0.60 and beyond.
Strong support exists around $0.40, with failure to hold risking a deeper retracement.
Key Observations
XLM peaked near $0.75 in a completed 5-wave impulse before correcting.
The price is consolidating in a descending triangle, signaling a bullish reversal pattern.
RSI stabilization supports a potential breakout as momentum cools.
A breakout could target $0.60 and higher in the next bullish phase.
XLM Price Prediction
The hourly XLM chart shows a descending triangle following a corrective ABCDE structure within Wave (iv).
The price is hovering near $0.42 support, indicating a potential breakout to the upside as bullish momentum builds. RSI remains neutral, suggesting indecision but stabilizing momentum.
XLMUSD testing horizontal zone | Credit: Nikola Lazic/TradingView
A break above this range could signal the start of Wave (v), targeting higher levels. Failure to break resistance may extend consolidation toward $0.40, which serves as the critical support level.
RSI reveals minor bullish divergence, hinting at a potential upward move. The next major resistance is $0.50, aligning with previous highs.
A breakout beyond $0.48 confirms renewed bullish strength, while support around $0.40 needs to hold to avoid further downside.
Support: $0.40 (lower wedge boundary and key horizontal level).
Breakout Target: $0.50 (previous highs) and higher into Wave (v).
Trend Confirmation: A break above $0.48 signals a bullish reversal; failure risks deeper consolidation.
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.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
