The cryptocurrency market experienced a significant bullish surge in the past 24 hours. Both Bitcoin (BTC) and Ethereum (ETH) saw price increases of 3% and 7% respectively. This positive momentum has allowed major altcoins, including Stellar (XLM), to regain ground.
Stellar (XLM) has surged by more than 6%. Beyond its price strength, the XLM chart is signaling the formation of a bullish ascending triangle pattern, a technical setup that could indicate an upcoming breakout.
Ascending Triangle Pattern in Play
On the 4-hour chart, XLM has been forming a textbook ascending triangle. This is a bullish continuation structure that typically precedes upward price movements. The upper boundary of the triangle has shown repeated rejections near the $0.2608 level, while the lower trendline continues to ascend, indicating increasing buying pressure.
Previous rejections from the $0.2608 resistance level led XLM to its base around $0.2390. However, buyers stepped in aggressively, quickly driving the price back towards the triangle's resistance zone. The price also moved above the 100 Moving Average (MA), which now acts as reclaimed support at $0.2481. This development is a key signal that momentum is shifting back in favor of the bulls.
Future Outlook for XLM
Current price action suggests that XLM is preparing for another attempt to break through the neckline resistance, which lies between $0.2575 and $0.2608. A confirmed breakout above this zone, followed by a retest, would validate the ascending triangle pattern and potentially open the door for further upward movement.
The measured move projection derived from the ascending triangle pattern suggests a potential target of $0.3016. This represents an approximate 18% upside from current trading levels. As long as the price continues to respect the rising support trendline and the 100 MA, a bullish continuation remains the primary expectation.
It is important to note that this pattern is forming on the 4-hour timeframe, which can still be subject to volatility. Until XLM achieves a decisive close above the $0.2608 resistance level, there remains a possibility of another rejection towards the triangle's base within the ongoing compression phase.