Analysts note that Stellar (XLM) price could be on the verge of significant growth, reminiscent of its 2017 rally. This is based on analyzing long-term charts and comparable patterns.
Historical Patterns and Their Significance
The chart displayed above shows how Stellar spends a long time in a channel before a breakout. Analyst JavonTM1 claims that XLM is testing a similar setup after exiting a multi-year channel. This recurring pattern could indicate Stellar is on the verge of another parabolic move if it successfully breaks through historical resistance.
Key Technical Indicators
In the daily chart, Stellar shows an upward trend due to recent price movements. In November, XLM rose to $0.60 after a significant shift, then slightly decreased. A Golden Cross, when the 13-day MA crossed the 49-day MA, occurred in November, signifying continued upward momentum. The RSI, after reaching overbought levels, cooled to 54.64, indicating more subdued selling pressure.
Support, Resistance Levels, and Market Outlook
Stellar faces first resistance at $0.50 level. Breaking through this level opens the possibility of continued upside and testing the $0.85 to $1.00 resistance zone. Conversely, $0.4420 serves as short-term support. The market outlook remains bullish if Stellar can overcome current resistances and hold the support.
Stellar price could significantly rise if it manages to surpass critical resistance levels and maintain positive technical signals. Analysts continue to monitor developments in the market.
