Key Takeaways
Stellar (XLM) has experienced a sharp resurgence in recent sessions, spiking over 5% from yesterday’s lows.
This recovery was driven by a bullish breakout from a descending wedge, a common reversal pattern, which now puts the asset in a bullish scenario.
The higher time frame reveals structural bullish strength, while the lower time frame emphasizes key Fibonacci-based retracement and extension targets that could shape short-term direction.
XLM Price Analysis
XLM’s breakout from the descending wedge pattern, visible on the 4-hour chart, marked the end of a protracted corrective phase on March 11 at a low of $0.22
The asset surged from a low of $0.30 to a high of $0.30, an impressive 40% rally that clearly established bullish momentum.
This breakout also corresponds with a completed ABC corrective structure supported by Elliott Wave Theory.
Post-breakout, XLM confronted horizontal support around $0.26, establishing a higher low, considering the current bullish signs.
The Relative Strength Index (RSI) on the daily chart hovers around the median point with slightly upward curvature, indicating the resurgence of the bullish momentum.
Its pullback from a $0.30 high to a higher low of $0.26 yesterday, March 31, served to retest the broken resistance for support. Now that it has, it will likely continue advancing to the upside.
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Sustaining above the $0.365 horizontal resistance is crucial for maintaining the bullish thesis, but a breakdown below $0.26 could trigger a reversion.
XLM Price Prediction
The 4-hour chart provides a granular look at the unfolding wave count, showing a clear Fibonacci extension framework tied to the initial breakout.
Following the development of the first two waves, we are now likely seeing the price enter wave 3’s explosive move up.
This needs further validation, but our Elliott Wave count supports the assumption.
Fibonacci extensions project the next upward targets near $0.365 (1.618 Fib) as its typical target.
This target aligns with prior structural highs, increasing their reliability as potential reversal or consolidation zones.
Early signs of bullish continuation are beginning to emerge in the RSI, as it crossed the 50% mark on the 4-hour chart.
A shart rejection below $0.365 would invalidate the bullish wave count and shift the bias back to neutral or bearish in the near term.
But a consolidation below this area will point at its corrective wave 4, meaning there would be a potential for another higher high of $0.40.
Monitoring the interaction with $0.365 will be essential to determine if the breakout can be sustained beyond short-term euphoria.
Key Levels to Watch
- Immediate Resistance: $0.365 (1.618 Fibonacci extension, structural high).
- Major Resistance: $0.40 (projected Wave 5 target if Wave 4 consolidates).
- Immediate Support: $0.30 (breakout level and recent local high)
- Key Support: $0.26 (higher low, retest of broken resistance).
- Critical Support: $0.22 (March 11 bottom, invalidation of broader bullish structure).
- Short-Term Target for Wave 3: $0.365 if the momentum continues.
- Invalidation Zone: Below $0.26, risks reverting to corrective territory.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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