Market Overview
The broader cryptocurrency market is showing steady performance today, with Bitcoin (BTC) and Ethereum (ETH) trading flat. Despite the muted price action in majors, several altcoins — including Stellar (XLM) — are displaying promising technical setups that hint at possible upside momentum in the near term.
XLM is in green today with modest gains but more importantly, its chart is now displaying a key pattern formation that hints at a potential breakout in the sessions ahead.
Symmetrical Triangle Pattern
On the 4-hour chart, XLM is consolidating within a Symmetrical Triangle pattern. This structure represents a period of equilibrium between buyers and sellers before a decisive breakout occurs. Historically, such formations tend to resolve in the direction of the prevailing trend, which, in XLM’s case, has recently leaned bullish.
The chart indicates that XLM recently rebounded from the support base near $0.3024, where buyers intervened following a short-term dip. This recovery allowed the token to reclaim its 50-hour moving average (MA) around $0.3156. The current price is trading near $0.3195, positioned just below the upper boundary of the triangle.
This technical alignment suggests that a breakout attempt may be imminent.
Potential Price Movements for XLM
If bullish momentum continues and buyers successfully defend the 50-hour MA, a breakout above the triangle’s upper trendline could occur. A subsequent reclaim of the 100-hour MA, located around $0.3291, would further strengthen the bullish outlook. Based on the measured move projection from the triangle pattern, XLM could potentially rally towards $0.3823, representing a possible 19% increase from current price levels.
Conversely, if XLM fails to maintain its upward trajectory and breaks below the triangle’s lower support line, the bullish scenario may be deferred. In such a case, traders would likely monitor the $0.302 region for a potential bounce.