Stellar Lumens (XLM) breaks out of a descending resistance line, signaling potential bullish momentum.
Key insights include full retracement support, volume surge, and resistance flip.
Short-Term Bullish: Returning above the double bottom pattern suggests a positive outlook for XLM.
Stellar Lumens (XLM) has recently broken out of a descending resistance line, signaling a potential bullish trend. On November 4, Stellar Lumens completed a significant token burn, destroying 55 billion XLM tokens.
The Stellar Development Foundation implemented this burn to enhance efficiency within the Stellar ecosystem. Following the announcement, XLM surged by 25%, igniting bullish sentiment among investors.
Technical Analysis: Key Insights
The weekly chart reveals that XLM retraced fully from its December 2017 high of $1.10 to the May 2017 high at $0.05. Remarkably, the current level has held as support, acting as a springboard for XLM’s upward movements.
Although the price of XLM is in a 23-month downtrend since its 2017 peak, some analysts predict an upsurge in the coming days. For instance, Javon Marks believes that only time seems to be in the way of a price rally to $0.681.
As $XLM (Stellar) continues to hold broken out and free of the displayed resisting trend, only time is looking to be in the way of a prices point of $0.681!With this breakout, an over 603% uphill run to reach this target can be coming and all of this post-breakout action could… https://t.co/y5Hc6HSgcC pic.twitter.com/r7RdV3GdTZ
— JAVON MARKS (@JavonTM1) July 12, 2024
Volume Surge and Resistance Flip
XLM surged and printed an all-time high volume candle on Bitfinex. The price broke through the crucial resistance at $0.07 and pushed further toward the range high at $0.09.
For sustainable upward momentum, a retest near $0.073 is necessary to confirm the support/resistance flip. If XLM rallies toward $0.13, it will breach the weekly downtrend for the first time in 23 months.
Notably, the same price action occurred on the XLM/BTC pair. During the 2017 crypto mania, high-volume spikes took place, but XLM consistently retraced to levels below 800 satoshis (sats). Now, with the recent bullish momentum, XLM could trigger a rally, potentially reaching $0.13 and beyond.
Returning above the double bottom pattern is a positive sign for XLM in the short term. As the token burn and technical indicators align, investors eagerly await further price movements. Keep an eye on XLM’s performance—it might just be the beginning of a new bullish cycle.
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The post XLM Returns Above Double Bottom Pattern Printing Highly Bullish Signal for Stellar Lumens appeared first on Crypto News Land.
