A potential breakout scenario has been identified for Stellar (XLM), which might affect its short-term price movements. Crypto analyst Ali Martinez noted XLM is consolidating within an ascending triangle pattern.
What is an Ascending Triangle?
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, leading potentially to a breakout.
Current Analysis of XLM
Ali Martinez shared a four-hour chart of XLM/USDT on Binance, showing price consolidation in a triangular pattern, with horizontal resistance highlighted between $0.29 and $0.295. Successfully breaking above this line could lead to a 17% rise. At the time of writing, XLM was up 0.74% in the last 24 hours to $0.2787.
Potential Scenarios
Stellar (XLM) reversed its downtrend after reaching $0.297 on March 19. Three potential scenarios based on daily charts are presented. In the short term, the market is focusing on the $0.29 to $0.305 range. A successful breakout might attract further bullish momentum, while failure could lead to consolidation or further decline.
Scenarios for XLM suggest continued attention to key support and resistance levels. A successful breakout could significantly affect its price movement, while failure may prompt further consolidation.
