Stellar (XLM) is currently making a strong push to reclaim a key level that could potentially lead to a retest of a significant resistance zone. Some experts in the market have even suggested that the price of XLM may be gearing up for a massive surge towards a new all-time high (ATH).
Stellar has witnessed a 9% surge in the past day, bouncing back from a recent market downturn and rallying back to the $0.30 mark. Analysts like Ali Martinez have indicated that Stellar could be on the brink of a breakout of up to 300%, as the cryptocurrency seems to be forming a bullish pattern.
After a breakout in November 2024, XLM began forming a bullish flag pattern, with a post-US election rally of 600% forming the flagpole. Since then, Stellar has been trading within a price range of $0.63 to $0.25, shaping the flag pattern. However, despite reaching a three-year high in December, XLM has seen a 52% price drop and struggled to break above its downtrend line. The cryptocurrency retraced nearly 40% during the February market correction, hitting its lowest price levels since November.
Over the weekend, Stellar joined the rest of the crypto market in a surge, triggered by US President Donald Trump’s announcement of a US Crypto Strategic Reserve that includes cryptocurrencies like XRP, Cardano (ADA), and Solana (SOL), all “made in the USA.” XLM surged by around 25% to $0.37, testing the key resistance level at $0.35. This range of $0.32 to $0.35 has been crucial for XLM since the breakout in Q4 2024, initially serving as a strong support level before turning into resistance in February.
Chart analysts are closely watching XLM’s performance, with some suggesting that a sustained break above the $0.42 resistance level could trigger a bullish run towards $1.60. However, XLM has struggled to reclaim a key level within its three-month price range, indicating a potential challenge in the short term.
In a similar pattern to 2017, XLM recently failed to hold the $0.35 level amid a market dip on Monday, leading to a 20% retracement. The cryptocurrency is now attempting to reclaim the $0.30 level after bouncing from a support level at $0.27. Technical analysts have noted that XLM’s Relative Strength Index (RSI) broke out of a 96-day downtrend, with price consolidating in the golden pocket area.
Looking ahead, analysts are eyeing a potential target of $2.46 for XLM, coinciding with the 1.272 Fibonacci level. This aligns with a pattern observed in 2017 when Stellar experienced a breakout followed by a consolidation period within a bullish flag, leading to a 190% surge to an all-time high in early 2018.
At the time of writing, Stellar is trading at $0.30, marking a 2.4% increase in the weekly timeframe. As XLM continues to make moves in the market, investors and traders will be keeping a close watch on its performance and potential for further growth.