Stellar price token might be setting up for another big move, and traders are watching August closely. BeInCrypto shared on X that two factors are aligning in August that could influence price action; a bull flag pattern on the daily chart and a concentration of liquidations near the $0.42 mark.
The tweet highlights how XLM’s previous 84% rally has transitioned into a consolidation phase, potentially setting the stage for a continuation. Heatmap data supports this narrative, with $0.42 emerging as a liquidity cluster that could act as a magnet for the next move.
XLM Price Holds Bull Flag Pattern
The price chart shows XLM surged by over 114% in early July, rising from approximately $0.13 to $0.276. Following this vertical rally, price entered a downward-sloping channel, a typical structure known as a bull flag.
This pattern is often considered a pause within a broader trend, with price compressing before another potential breakout.
At writing, Stellar price is trading at approximately $0.4068, testing the upper end of the flag. A confirmed break above this channel can target past highs around $0.45–$0.47.
Sustained trades above the $0.38–$0.39 support zone remain a key short-term requirement to maintain the bullish perspective.
Stellar Liquidation Heatmap Points to $0.42 Magnet Zone
Data from CoinGlass reveals concentrated liquidation levels between $0.42 and $0.45. These levels represent areas with high leverage positions, and in fast-moving markets, they can attract price like a magnet.
Traders often monitor these zones for potential breakout fuel, as liquidation triggers can amplify momentum.
Below the current price, demand appears to be building between $0.35 and $0.37, furthering the case for continuation to the upside. If XLM price regains $0.42 on increasing volume, the path toward $0.50 may reopen.
Read Also: Top Analyst Reveals Bold Ripple (XRP) Price Target for September
Stellar Price Breakout Scenario Hinges on Key Levels
The technical setup remains intact as long as XLM trades within the flag and holds its base. A confirmed breakout could project a move that mirrors the flagpole height, which places a potential target near $0.67.
Failure to break the structure, however, would shift focus back to the support zone below $0.39. Traders are watching closely as XLM price consolidates into this decision point.
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