Usman Salis
Stellar (XLM) forms a bull flag after an 84% July surge, with the crucial $0.42 resistance level now in focus as momentum builds for a potential August breakout.
XLM Price Action Sets Up Bull Flag After July Surge
After rocketing 84% in July from around $0.218 to nearly $0.50, Stellar has cooled off into what traders are calling a textbook bull flag formation. The pattern's showing up clear as day on the daily charts, and anyone who's traded crypto knows these setups can be pure gold when they work out.
Right now, XLM is sitting pretty at $0.4021, just a stone's throw from that critical $0.42 level that's acting like the upper boundary of this consolidation. If we see a clean break above this point, we could be looking at some serious fireworks in the coming weeks.
XLM Bull Flag Pattern Points to $0.42 Breakout Zone
The liquidation heatmap tells an interesting story here – there's a fat cluster of activity parked right at $0.42. That's not coincidence; it's where the action's likely to happen. When price starts pushing into these zones, it often acts like a magnet, pulling in more buyers and potentially triggering a cascade of stop orders.
What makes this setup particularly juicy is how clean the flag formation looks. After such a massive July run-up, seeing XLM hold these levels instead of crashing back down shows there's still plenty of appetite for the token. The bulls are clearly in control, just taking a breather before the next leg up.
With this technical picture shaping up and August historically being a decent month for crypto momentum plays, Stellar could be gearing up for another significant move. The $0.42 level is where all eyes should be focused – clear that, and we might just see XLM make some serious headlines again.
Usman Salis
