Stellar’s (XLM) price is presently forming a descending channel on the daily time frame, and if the commodity successfully breaks through its trendline, it might signify the start of a bullish rally, according to crypto analyst Universe of Crypto.
Since early April 2024, the price of XLM has been moving in a declining channel that is marked by a string of lower highs and lower lows.
This pattern has kept the XLM’s price under downward pressure for several months. The channel’s bottom trendline has served as support, and the higher trendline has served as a crucial level of resistance.
As XLM approaches this channel’s upper barrier in October, there may be a chance for a breakout. If Stellar breaks over this barrier, it might signal that its protracted downward trend is coming to an end. This level is being watched by traders since a breakout might lead to additional gains.
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Stellar (XLM) Price Potential Breakout and Retest Scenario
The analyst mentioned that a successful breakout from the descending channel would likely be followed by a retest of the former resistance level. This retest is an important technical move, as it confirms whether the resistance has turned into support. If XLM holds this level after the retest, it could trigger a strong.
The XLM chart also projects an upward move of over 50% if the breakout is confirmed. The price target for this rally is near $0.150, a previous key level that acted as resistance in April 2024.
Read Also: Where is the Bittensor (TAO) Price Headed Next?
Support and Resistance Levels
Currently, XLM has strong support around $0.090, the lower boundary of the descending channel, which has held the price in check during previous declines.
On the upside, the immediate resistance lies near the $0.095-$0.100 region, with the next major hurdle expected around $0.150, where XLM’s price could face renewed selling pressure if the rally is sustained.
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