- Stellar (XLM) is showing bullish reversal patterns on lower timeframes, with key technical indicators supporting potential upside.
- However, caution is advised as volume remains low and the MACD crossover is still in its early stages, making confirmation essential before fully committing.
Stellar (XLM) is showing promising signs of a potential recovery as it forms several bullish chart patterns across lower timeframes. Traders are closely watching for a shift from bearish to bullish momentum, with technical indicators confirming the reversal potential.
Bullish Chart Patterns Emerge
On the 1-hour chart, XLM has broken out from a falling wedge pattern, suggesting a shift in market sentiment. The 30-minute chart also reveals a double bottom pattern between $0.2089 and $0.22, with a breakout above the neckline signaling further upward movement. Additionally, a bullish engulfing candle on the 15-minute chart adds to the growing optimism, indicating short-term upward momentum.
Technical Indicators Support the Bullish Outlook
Bollinger Bands are signaling increased volatility as Stellar climbs from the lower band toward the midline. The Moving Average Convergence Divergence (MACD) shows a bullish crossover on both the 1-hour and 4-hour charts, with the histogram moving upward. Meanwhile, the Relative Strength Index (RSI) is recovering from oversold conditions and is approaching neutral territory, confirming the potential for renewed buying interest without becoming overextended.
Key Price Levels to Watch
Support is currently strong at $0.2200 and $0.2089, with resistance at $0.2370 and $0.2650. A breakout above $0.2370 could trigger further gains, with the next targets at $0.25 and $0.2650, aligning with the upper Bollinger Band on higher timeframes.
Exercise Caution as the Market Develops
While the bullish patterns and indicators suggest a positive outlook, traders should remain cautious. The volume remains low, and the MACD crossover is still in its early stages. A rejection at $0.2370 could lead to a pullback toward $0.22 or even $0.2089. As always, waiting for confirmation before fully committing to a bullish position is key.
