A potential breakout scenario has been identified for Stellar (XLM), which might have implications for its short-term price. In a recent tweet, Ali Martinez, a crypto analyst, noted that XLM is consolidating within an ascending triangle pattern, and if a breakout occurs, XLM could see a 17% surge in value.
An ascending triangle is a bullish continuation pattern characterized by a horizontal resistance level and an upward-sloping trendline. Once buyers start to gain strength, they keep putting pressure on the horizontal resistance level, and a breakout might happen as a result.
Ali shared a four-hour chart of XLM/USDT on Binance, revealing price consolidation in what appeared to be a triangular pattern, with a horizontal resistance level highlighted in the range between $0.29 and $0.295.
Should XLM successfully break above the horizontal resistance line, it might lead to a 17% rise. At the time of writing, XLM was up 0.74% in the last 24 hours to $0.2787.
A 17% increase from current price levels would imply a target of $0.32. On the contrary, if the breakout fails, this may result in continued consolidation or a pullback.
Potential scenarios
Stellar (XLM) reversed three days of downfall initiated after reaching highs of $0.297 on March 19. Three potential scenarios are presented based on indications seen on the daily charts.
Related
Currently, XLM is trying to hold down support at $0.274, which coincides with the daily SMA 200 to prevent further declines to $0.26 or even $0.226.
In the short term, the market will be closely watching the price action around $0.29 to $0.305, which coincides with the daily SMA 50. A confirmed breakout could attract more bullish momentum, while a rejection might signal a need for further accumulation before the next move.
Another possibility, if Stellar (XLM) holds above the daily SMA 200 at $0.274, is that it continues in consolidation or range trading between its daily moving average of 50 and 200 before aiming for a breakout, which would target $0.375 and $0.514 if the momentum is sustained.
