The Stellar price took a hit of 7% today amid current market volatility and is now trading around $0.43. Considering that XLM typically mirrors XRP’s path and XRP is down 6% today, this plunge is not surprising.
Popular crypto analyst BLOCK BULL recently shared an intriguing Stellar chart with his 11,000 followers on X, generating significant attention in the crypto community.
XLM Price Analysis
The chart reveals a clear symmetrical triangle pattern, with the price currently hovering around $0.43. This formation shows converging trendlines, with the upper resistance line connecting a series of lower highs, while the lower support line links the higher lows. The pattern suggests XLM is in a period of consolidation, with key resistance near $0.45 and support holding around $0.42.
What makes this setup particularly interesting is the timing. The triangle’s apex converges right around January 29, 2025, coinciding with the upcoming Federal Reserve meeting. This timing could prove significant, as Fed decisions often trigger substantial moves in the crypto market.
/html$XLM looks fucking MEGA on the daily.
— 📈BLOCK BULL📈 (@TheBlockBull) January 21, 2025
Apex 29th Jan = FED Meeting 🚀🚀 pic.twitter.com/GlqehK1QR5
The chart also highlights a notable resistance level at $0.63345, which could serve as a potential target if a bullish breakout occurs. However, traders should note that the pattern itself doesn’t guarantee direction – while BLOCK BULL appears confident in an upward move, the price could break in either direction.
The consolidation within this triangle pattern indicates reduced volatility, but this calm period often precedes a significant price movement. Should XLM break above the $0.45 resistance, it could target higher levels around $0.50 and then $0.80 – $1. Conversely, a drop below $0.42 might lead to further downside, with potential support levels at $0.35.
Looking at historical patterns, XLM’s correlation with XRP movements adds another layer to this technical setup. The last time Stellar formed a similar triangle pattern following XRP’s price action was during the 2021 and 2024 bull runs, though past performance doesn’t guarantee future results. If XRP manages to recover from its current 6% decline and breaks upward from its own consolidation pattern, it could provide additional momentum for XLM’s potential breakout, given their historically linked price movements.
Read also: Whales Invest $165 Million In XRP and These 2 Undervalued Altcoins
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