Traders are closely watching Stellar (XLM) prices for a potential breakout in August, influenced by two key factors.
Stellar Bull Flag Structure
The price chart of Stellar (XLM) shows a surge of over 114% in early July, climbing from approximately $0.13 to $0.276. After this vertical rally, the price entered a downward-sloping channel, known as a bull flag. This pattern is often considered a pause within a broader trend, potentially setting the stage for another breakout. As of writing, Stellar is trading at around $0.4068, testing the upper end of the flag.
Concentration of Liquidations at $0.42
Data from CoinGlass reveals concentrated liquidation levels between $0.42 and $0.45. These levels represent areas with high leverage positions and can attract price like a magnet in fast-moving markets. Traders often monitor these zones for potential breakout fuel, as liquidation triggers can amplify market momentum.
Breakout Scenario for Stellar
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, potentially targeting near $0.67. However, failure to break the structure would shift focus back to the support zone below $0.39.
Thus, traders are closely monitoring the price dynamics of Stellar (XLM), especially around the levels of $0.42 and $0.39, which could determine future market trends.
