Stellar (XLM) Breakout Signals End of 5-Month Slump: Analyst Predicts 2x Surge Ahead

After nearly five months of steady decline, Stellar (XLM) may finally be turning a corner. According to popular chart analyst @Cryptokartha, XLM has just broken out of a falling wedge pattern—a formation known for signaling potential bullish reversals.

Stellar (XLM) has been struggling for nearly five months, but according to popular chart analyst @Cryptokartha, a breakout signals the end of the slump.

Key Takeaways

Stellar price broke out of a falling wedge pattern, signaling a potential bullish reversal.

The price also retested the upper trendline of the wedge, which was previously resistance but is now acting as support.

This suggests that buyers are now stepping in and the breakout wasn’t just a fluke.

The pattern suggests that XLM could rise between 80% and 100% in the short-to-medium term, reaching a target zone of $0.27-$0.48.

This aligns with previous resistance zones from earlier moves and matches the measured move often expected from falling wedge breakouts.

This Is How High Stellar (XLM) Could Go After Finally Breaking Out

Stellar price had been steadily sliding inside a wedge formed by two downward-sloping trendlines. Over time, the price kept making lower highs and lower lows, but the range was tightening. Usually, this is a sign that selling pressure is losing steam.

After nearly five months of sliding lower, Stellar finally managed to break out of the wedge. The price not only went above the upper trendline but also came back down to retest that same level. This retest is a good indication that the old resistance is flipping into support.

The fact that the price managed to hold above the wedge's upper trendline and even retested it afterward suggests that buyers are now stepping in and the breakout wasn't just a fluke.

The pattern suggests that XLM could rise between 80% and 100% in the short-to-medium term, reaching a target zone of $0.27-$0.48. This aligns with previous resistance zones from earlier moves and matches the measured move often expected from falling wedge breakouts. On the chart, this range is indicated by a projection box labeled "0.2109 (80.04%)".

The bigger picture adds weight to this outlook. Before entering the wedge, XLM had a solid run-up in price, likely during the 2023 bull trend. What followed was a cool-off period-typical after big rallies-until the current breakout shifted the mood. If history repeats, Stellar could now resume its previous uptrend, with fresh momentum behind it.

However, for this move to play out, traders will want to see continued buying interest. One thing to note is that the chart doesn't show trading volume, but it could be useful in assessing the strength of the breakout. Breakouts supported by rising volume tend to be more reliable.

Another factor to keep in mind is that XLM faces a few resistance levels ahead. The $0.38 to $0.42 zone could cause some hesitation, and the $0.48-$0.50 area is another potential barrier. But if XLM can push through these levels, the rally could become even more explosive.

Of course, there's also the risk that the price drops back into the wedge, which could invalidate the breakout and put bulls in a tricky spot. Late buyers might get caught in a fake-out if momentum fades too quickly. But as of now, the breakout and successful retest suggest that the tide might be turning in favor of the bulls.