Stellar Lumens (XLM) Price Forms a Falling Wedge and Rounding Bottom Pattern

Market analysts believe this technical structure is inherently bullish, as it often signals a reversal after a period of declining prices.

Stellar Lumens (XLM) price has been consolidating within a falling wedge pattern for 115 days, leading to speculation of a potential breakout.

This technical structure is inherently bullish as it often signals a final attempt by sellers to hold an asset, indicating a reversal after a period of declining prices. Recent price movements, including an 8% uptick, have added to the optimism that XLM could soon experience an upward surge.

XLM Price Forms a Falling Wedge and Rounding Bottom Pattern

Crypto analyst TheBlockBull highlighted that XLM price has been forming a falling wedge pattern for over 115 days.

A falling wedge occurs when an asset experiences lower highs and lower lows while the difference between the highs and lows becomes smaller. This pattern usually leads to a breakout in the opposite direction of the trend, meaning a potential bullish move for XLM.

Furthermore, another analyst, noted that XLM is also in the rounding bottom pattern, which is considered to be bearish. This pattern indicates that there is a likelihood of reversing the selling pressure and going back to accumulation, which targets an upward turn in price.

VipRoseTr proposed volume confirmation before going long, as high volumes mean there is a huge demand, and this would push the price up.

Javon Marks has the target price set at $0.681, which represents an upside potential of 126% compared to the current price level. This bullish outlook has been derived after analyzing trends and trend indicators showing that XLM is on an upward rise.

XLM Price Key Resistance and Support Levels to Watch

For XLM to confirm a breakout, it must overcome several important resistance levels. Currently, XLM is testing $0.294, a level that has been acting as a barrier.

A move above this resistance could push the price toward $0.315, where sellers may attempt to halt further gains. If buyers succeed in breaking through, the next key levels to watch are $0.5036 and $0.6362.

On the support side, XLM’s price is holding above $0.2775, which is a crucial level for maintaining the current bullish setup.

If the price fails to stay above this zone, it could drop toward $0.2608, where stronger buying interest may emerge.

Holding above $0.2775 would reinforce the bullish case and increase the chances of a breakout in the coming days.

Market Sentiment and Broader Crypto Trends

Beyond technical patterns, broader market trends are also impacting XLM’s price movement. The crypto market has been showing renewed strength, with several assets displaying bullish momentum. At press time, XLM price is valued at $0.2879, showcasing a 7.18% increase over the past 24 hours.

One of the key factors driving this momentum is the Federal Reserve’s upcoming interest rate decision, which traders widely expect to remain unchanged. A stable macroeconomic environment could provide further support for digital assets, including XLM.

Despite its recent gains, XLM remains 70.46% below its all-time high of $0.94 from April 2021. However, the ongoing bullish setup has fueled expectations that XLM could stage a stronger recovery.

Can XLM Sustain Its Uptrend and Break Out?

The next several days will likely be decisive for XLM since the traders are expecting a breakout. If XLM sustains above the critical support zones and surges above the crucial resistance, the token could experience an upward surge.

If the price of XLM emerges from the falling wedge chart pattern, there is a possibility of a bullish run towards $0.50. However, if resistance persists, it may take some time before XLM moves back and forth between the range of $0.27 to $0.31.