- XLM is rebounding from the $0.22$0.24 support zone and trading near $0.2462, showing signs of bullish momentum.
- A descending wedge on the weekly chart points to a possible breakout, supported by the 0.786 Fibonacci level.
- Potential upside targets include $0.4584, $0.5610, and $0.6719 if the bullish setup holds.
- A weekly close below $0.20 would invalidate the pattern, while a move above $0.25 could confirm a trend reversal.
Stellar (XLM) is showing definite signs of a bull reversal as there is a swift comeback from a key support point. Following weeks of pressure selling, the altcoin picks up pace, and both the daily and weekly charts continue to suggest a potential breakout scenario.
In the daily chart, XLM recently reversed from the $0.22$0.24 support region and is currently trading around $0.2462. This region had been among the main demand areas earlier, and the current surge upwards indicates new interest among bulls. The rally upwards also comes against the backdrop of an ongoing downtrend, and this may indicate bears slowly surrendering control.
Source: CoinMarketCap Also Read: XLM Builds Strong Momentum, Eyes Explosive $0.63 Bullish Rally
Zooming out to the weekly chart, Stellar is establishing a bullish descending wedge, a setup very prone to sharp moves upwards. Price is currently moving close to the lower boundary of the wedge and on the same level as the 0.786 level of the Fibonacci retracement. This level, in the past, had been very good support within crypto assets and often acted as the launch pad to large moves upwards.
If this trend continues as hoped, XLM could have a target on a number of key resistance levels. These would initially be $0.4584, then $0.5610, and then $0.6719, each level a Fibonacci extension and previous price action. These would mark a more than doubling of the value of Stellar from current levels, should the bull formation persist.
Source: X However, a weekly close below the $0.20 support level would undermine the positive sentiment and potentially suggest downward declines. For now, though, the technical formation is still bullish, and an ongoing breakout above the $0.25 level could confirm the onset of a new uptrend.
With strong technical support and solid backing below, Stellar is one to keep an eye on as the larger crypto market looks for a rebound.
Also Read: Stellar (XLM) Eyes Reversal as Price Targets $0.6659 After Volatility
