Stellar (XLM) is reversing from a bearish to a bullish and forming a falling wedge pattern, trading towards its resistance from a significant level of support. Crypto market overall is slightly bearish, but XLM remains bullish. Traders and investors are hoping that XLM comes back from a recent dip.
The price of XLM, at the time of writing, is trading at $0.2763 with a 24-hour trading volume of $153.21M, while its market cap is $8.54B. The price of XLM in the past 24 hours has been slightly negative and affected by volatility, though its price over the past week has appreciated by 5.00% and has been exhibiting a strong potential for a further rise.
Source: CoinMarketCap
XLM breakout sparks bullish outlook
A crypto analyst, BitMonty, highlighted that Stellar (XLM) has broken through a falling wedge structure, a typical reversal technical pattern that traditionally provides a bullish reversal.
After a phase of consolidation featuring lower lows and lower highs, the breakout implies that selling pressure may be increasing and a shift in momentum is occurring. The breakout has also sparked and gained interest from traders hoping to secure early warnings of a potential near-term trend.
XLM is moving progressively towards a strong resistance range of $0.300 to $0.309. Historically, this has been a strong resistance point, so a confirmed breach above this level would put a possible continuation of the advance in place.
Source: X
If the bullish pressure continues and price breaks through this level on strong volume, then XLM would be in a potentially more extended recovery phase. For now, the resistance range still stands as a level to monitor closely.
To its downside, near-term support stands at $0.238 to $0.246, levels from where the breakout was initiated. Sticking above this level of support is paramount to keeping things bullish in nature.
