Stellar (XLM) technical analysis suggests a potential breakout. An analysis by The BigBC Finance Channel outlines key price targets, bullish patterns, and historical parallels, offering insights into both short-term and long-term price movements.
The analyst begins by examining XLM’s price movement, noting a gradual decline since its November 2023 peak. The downtrend follows a structured resistance and support pattern, with multiple tests of key levels.
“There’s a clear channel forming between support and resistance,” the analyst explains, highlighting XLM’s recent bounce from the $0.31-$0.32 support zone. This area has held firm multiple times, signaling its importance in determining the next move.
What you'll learn 👉
XLM’s Breakout Potential & Bullish Patterns
There is now a bull flag pattern, which is typically interpreted as a bullish continuation indication. The analyst predicts that XLM’s price may rise sharply if it breaks over its present barrier level.
“This bull flag is a bullish pattern… If we break out, we could see a parabolic move,” the analyst states. The projection points to a potential 286% increase, with XLM reaching up to $1.60 by late February.
Beyond the short term, a larger triangle formation has been developing since 2017. If this pattern resolves with a breakout in 2025, the analysis indicates a possible price target of $22.
Read also: Avalanche (AVAX) Price Breaks Trendline – How High Can It Go?
Historical Parallels & Long-Term XLM Price Predictions
The analyst draws comparisons between XLM’s price action and previous bull cycles in 2017 and 2021. Historically, XLM has followed a pattern of parabolic surges, consolidation, and subsequent breakouts.
“History never repeats itself, but it often rhymes,” the analyst notes, emphasizing that XLM could replicate past performance. The long-term target of $22 by 2025 represents a 66x increase from current levels, contingent on a similar market cycle playing out.
XLM’s price behavior is also compared to XRP, which experienced a seven-year consolidation before its major breakout to $19. Given the structural similarities, the analyst suggests that XLM has the potential to follow a similar trajectory.
“If XRP can reach $19, then XLM has a real shot at hitting $22,” the analyst states, reinforcing the possibility of a major rally.
Trading Strategies & Stellar Key Levels
The analysis outlines critical resistance and support levels for traders eyeing XLM. The key resistance at $0.59 is identified as the trigger for a parabolic move. Meanwhile, the $0.31-$0.32 support range has proven significant, with recent bounces reinforcing its strength.
The analyst also discusses trading opportunities on MECH Exchange, citing no KYC requirements and low fees. Leverage trading up to 200x is mentioned as an option but is noted as high-risk.
XLM’s price movement remains at a critical juncture. If the bull flag pattern plays out, a short-term target of $1.50-$1.60 is possible. Looking ahead, a breakout from the long-term triangle formation could push XLM towards the $22 mark by 2025, provided historical trends repeat. With key resistance and support levels in focus, traders are urged to watch for any decisive moves that could signal the next major rally.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
