Stellar (XLM) begins to show trends resembling past movements of XRP. Charts indicate the formation of an inverse head and shoulders pattern.
Analysis of Inverse Head and Shoulders Pattern
On the daily chart, Stellar has created an almost perfect inverse head and shoulders pattern. The left shoulder formed in January, the head in late May, and the right shoulder has been steadily developing since August. The price is currently just below the important $0.50 level.
Market Memory and Previous Trends
Interestingly, this structure evokes memories of events that happened with XRP earlier this year, when it followed a similar path, broke through its resistance level, and continued to climb into double-digit percentages.
Possible Scenarios for Price Movement
Currently, XLM is trading around $0.452 — not far from the resistance level. To confirm growth, a close above $0.50 with strong volume is needed. Otherwise, the price may revert to test support at $0.40 or even $0.36.
Stellar (XLM) potentially holds chances for growth if it surpasses the critical $0.50 level. Investors should closely monitor the situation.
