Stellar Lumens (XLM) price has been consolidating within a falling wedge pattern for 115 days, sparking speculation of a potential breakout.
XLM Price Patterns: Falling Wedge and Rounding Bottom
Crypto analyst TheBlockBull highlighted that XLM price has been forming a falling wedge pattern for over 115 days. This pattern typically leads to a breakout opposite of the trend, suggesting a bullish move for XLM.
Furthermore, another analyst noted that XLM is also in a rounding bottom pattern, considered to be bearish. This pattern indicates a likelihood of reversing selling pressure and moving to accumulation, targeting an upward price turn.
XLM Key Resistance and Support Levels
For XLM to confirm a breakout, it must overcome several key resistance levels. Currently, XLM is testing $0.294, which acts as a barrier.
A move above this resistance could push the price toward $0.315. If buyers succeed, the next key levels to watch are $0.5036 and $0.6362.
On the support side, XLM's price is holding above $0.2775, a crucial level to maintain the current bullish setup. If the price dips below this zone, it may drop to $0.2608.
Market Sentiment and Broader Trends
Beyond technical patterns, broader market trends are influencing XLM’s price movement. The crypto market is showing renewed strength, with several assets displaying bullish momentum.
One of the key factors is the Federal Reserve's upcoming interest rate decision, widely expected to remain unchanged. A stable macroeconomic environment could further support digital assets, including XLM.
The next several days will likely be decisive for XLM. If XLM sustains above critical support zones and surges above crucial resistances, the token may experience an upward surge. However, if resistance persists, XLM may fluctuate between $0.27 and $0.31 in the near term.
