Stellar ($XLM) has recently been consolidating within an ascending triangle, a technical pattern that often signals an impending breakout. This consolidation phase, observed on the 4-hour chart, has seen the cryptocurrency maintain higher lows while facing consistent resistance near the upper trendline. The formation of an ascending triangle suggests that buying pressure is gradually building up, and a breakout could be on the horizon.
According to Crypto Analyst Ali Martinez, The chart illustrates the gradual tightening of price action within the ascending triangle. Over time, the price of $XLM has been respecting both the lower support and the upper resistance levels, creating a well-defined range in which market participants have actively engaged. The lower support has shown resilience, preventing further declines, while the upper resistance level has been holding back any upward movement. This balance between buying and selling pressure is characteristic of an ascending triangle, where the eventual breakout typically occurs when the price breaks above the resistance line.
Stellar’s Ascending Triangle and Breakout Volume
The pattern itself is characterized by higher lows, creating a series of upward sloping trendlines, while the resistance line remains horizontal. The breakout point for $XLM would occur when the price breaches the upper boundary of the triangle, which currently sits just below $0.2900. Such a move would indicate a significant increase in bullish momentum.
The key question for traders is whether $XLM will maintain its current pattern and break through the resistance level. The chart shows the cryptocurrency testing the upper resistance as of the latest market session, with a potential breakout looking increasingly likely. Should the breakout materialize, technical analysts are forecasting a potential price move of approximately 17%, with targets around $0.31 based on the measured move of the triangle.
According to the pattern’s technical projection, once $XLM breaks through the upper resistance line, it could target a price increase of up to 17%. This target price is based on the height of the triangle, measured from the widest part of the pattern to the breakout point. If the breakout occurs around $0.29, a move to approximately $0.31 could follow in the near term.
This potential price increase is significant for $XLM, especially considering its recent market activity. The cryptocurrency has shown resilience during this consolidation phase, holding steady despite broader market fluctuations. A successful breakout could mark a new bullish phase for Stellar, with potential for further upward movement toward additional resistance levels.
