Key Insights
- XLM price stayed inside a falling wedge pattern and could see a breakout next.
- Analyst eyes a 300% upside rally toward $1.60 in the short term.
Over the past seven days, Stellar (XLM) price has been attempting for a strong bounceback, but failed to sustain gains. In the last 48 hours, XLM price showcased roller coaster movements.
Analyzing the price action throughout the week, it looks like both the bear army and bull army have trapped and price hover close to the 200 day EMA mark. It highlights indecision among traders.
However, crypto analyst Ali Martinez found something interesting and predicted a 300% rally to $1.60 in the short term.
At press time, Stellar price was trading at $0.2878, noting an intraday decline of over 12.02% in the past 24 hours. Its market cap stood at $8.83 Billion and ranked 14th in the overall market.
Bullish Flag Pattern Signals Potential Rally for XLM Crypto
A recent post on X by Ali Charts revealed that XLM crypto formed a bullish flag pattern on the 3-day timeframe.
Since November 2024, the token traded inside the pattern’s trajectory. A break above the $0.42 resistance mark could trigger a 300% rise to $1.60 mark in the coming sessions.
Alongside the pattern’s bullish insight, another technical indicator pointed toward an upcoming rally.
As noted in the analysis by Ali, the TD Sequential indicator flashed a buy signal on the hourly chart.
This signal is particularly important because the TD Sequential is known for identifying exhaustion points within a trend.
Notably, Stellar price is in a falling wedge pattern and the ongoing downmove may be nearing its end.
On-Chain Metrics Reveal Bullish Insights
Following the 10th of February, the TVL saw a noticeable drop, retracing to approximately $53 Million last week.
However, this week the TVL exhibited a bounce and surged to $59.9 Million highlighting a sustained investor interest and confidence in XLM’s network.
Furthermore, the active addresses data witnessed a steady rise this week, noted at 61.7k, witnessing rising user adoption and demand for XLM.
The growing adoption is further evidenced by the rising DEX trading volume, which surged over 80% to $5.5 Million in the last 48 hours.
XLM Price Prediction: What are the Charts Saying?
XLM price chart shows signs of accumulation as bulls have tried hard to defend the 200 day EMA mark.
It has reached the demand zone of $0.2900 and could see a potential rally ahead.
The Relative Strength Index (RSI) line stood at 40 and was on the verge of a positive crossover.
Moreover, the On-Balance Volume stayed higher which highlights heightened trading activity.
Per the liquidation data, over $227k worth of long positions have liquidated in the past 24 hours, which highlights that bulls have exited and looks in a dilemma.
If XLM price breaks past the channel’s trendline of $0.35, it could see an upward movement and will rally to $0.4000 in the next few sessions.
A break below the $0.2700 mark could trigger further selloff toward the crucial support zone of $0.2500 ahead.
Per the liquidation data, over $227k worth of long positions have liquidated in the past 24 hours, highlighting that bulls have exited and are in a dilemma.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
