Potential Breakout for Stellar (XLM)

A potential breakout scenario has been identified for Stellar (XLM), which might have implications for its short-term price. In a recent tweet, crypto analyst Ali Martinez noted that XLM is consolidating within an ascending triangle pattern. If a breakout occurs, XLM could see a 17% surge in value.

> Stellar $XLM is consolidating within an ascending triangle. A breakout could pave the way for a 17% move! pic.twitter.com/jTziwGX8wg
> — Ali (@ali_charts) March 23, 2025

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 exert pressure on the horizontal resistance level, which may lead to a breakout.

Ali shared a four-hour chart of XLM/USDT on Binance showing price consolidation in a triangular pattern, with horizontal resistance between $0.29 and $0.295.

Should XLM break above the horizontal resistance line, it might lead to a 17% rise. At the time of writing, XLM was up 0.74% in the last 24 hours, trading at $0.2787.

A 17% increase from current levels would imply a target of $0.32. Conversely, if the breakout fails, continued consolidation or a pullback may occur.

Potential Scenarios

Stellar (XLM) reversed three days of decline after reaching highs of $0.297 on March 19. Three potential scenarios are presented based on daily chart indications.

Currently, XLM is trying to hold support at $0.274, coinciding with the daily SMA 200 to prevent further declines to $0.26 or even $0.226.

In the short term, the market will closely watch price action around $0.29 to $0.305, which aligns with the daily SMA 50. A confirmed breakout could attract more bullish momentum, while a rejection might indicate further accumulation needed before the next move.

Another possibility is that if Stellar (XLM) holds above the daily SMA 200 at $0.274, it may continue consolidating or range trading between its daily moving averages of 50 and 200 before targeting a breakout, aiming for $0.375 and $0.514 if the momentum is sustained.