Stellar Lumens (XLM) Price Analysis

Stellar Lumens (XLM) price has been consolidating within a falling wedge pattern for 115 days, raising speculation of a potential breakout.

Market analysts believe this technical structure is inherently bullish, as it often signals a reversal after a period of declining prices. Recent price movements, including an 8% uptick, have added to the optimism that XLM could soon experience an upward surge.

XLM Price Forms a Falling Wedge and Rounding Bottom Pattern

Crypto analyst TheBlockBull highlighted that XLM price has been forming a falling wedge pattern for over 115 days.

A falling wedge occurs when an asset experiences lower highs and lower lows while price movement becomes more compressed. This pattern typically leads to a breakout in the direction opposite of the trend, meaning a potential bullish move for XLM.

Furthermore, another analyst noted that XLM is also in the rounding bottom pattern, which is considered bearish. This pattern indicates a likelihood of reversing the selling pressure and returning to accumulation, targeting an upward turn in price.

VipRoseTr proposed volume confirmation before going long, as high volumes indicate strong demand, pushing the price up.

XLM Price Key Resistance and Support Levels to Watch

For XLM to confirm a breakout, it must overcome several important resistance levels. Currently, XLM is testing $0.294, a barrier level.

A move above this resistance could push the price toward $0.315, where sellers may attempt to stop further gains. If buyers succeed in breaking through, the next key levels to monitor are $0.5036 and $0.6362.

On the support side, XLM’s price is holding above $0.2775, a crucial level for maintaining the current bullish setup. If the price fails to stay above this zone, it could drop toward $0.2608, where stronger buying interest may emerge. Holding above $0.2775 would reinforce the bullish case and increase the chances of a breakout soon.

Market Sentiment and Broader Crypto Trends

Beyond technical patterns, broader market trends are also influencing XLM’s price movement. The crypto market has been showing renewed strength, with several assets revealing bullish momentum. At press time, XLM price holds at $0.2879, showcasing a 7.18% increase over the past 24 hours.

One of the key factors driving this momentum is the Federal Reserve’s upcoming interest rate decision, which traders widely expect to remain unchanged. A stable macroeconomic environment could provide further support for digital assets, including XLM.

Despite recent gains, XLM remains 70.46% below its all-time high of $0.94 from April 2021. However, the ongoing bullish setup has fueled expectations that XLM might stage a stronger recovery.

Can XLM Sustain Its Uptrend and Break Out?

The next several days will likely be decisive for XLM, as traders are expecting a breakout. If XLM sustains above critical support zones and surges above crucial resistance, the token could experience upward momentum.

If XLM emerges from the falling wedge chart pattern, there is a possibility of a bullish run toward $0.50. However, if resistance persists, it may take additional time for XLM to fluctuate within the range of $0.27 to $0.31.