Saad Ullah
Stellar's native token is setting up what could be one of the most compelling breakout plays in crypto right now. Trading within a tightening ascending triangle, XLM has been building pressure against critical resistance that's keeping bulls at bay. History shows these formations often lead to swift, profitable breakouts.
XLM Price Action Shows Classic Bullish Setup
Currently at $0.4374, Stellar has established solid support at $0.43 while repeatedly testing resistance between $0.46 and $0.47. This textbook ascending triangle behavior is what seasoned traders recognize as a precursor to significant moves.
The 4-hour chart shows XLM's session range from $0.437052 to $0.439194. What's encouraging is how the token maintains composure above support despite market uncertainty, suggesting potential whale accumulation at these levels.
Technical momentum is building with RSI at 53.23 – providing runway for upward movement without hitting overbought territory. This goldilocks zone often coincides with explosive breakouts.
Short Squeeze Could Amplify XLM Price Rally
Trader analysis on X suggests a confirmed close above $0.47 would complete the ascending triangle and potentially trigger a cascade of events. The most intriguing aspect is possible short liquidations adding fuel to any breakout move.
When overleveraged shorts get squeezed above key resistance, the resulting buying pressure creates vertical price movements. Given XLM's consolidation, there's likely a cluster of stop-losses sitting above the $0.47 zone.
The $0.50 target represents 14% upside from current levels – a substantial move that could materialize rapidly if conditions align. This would bring XLM back to levels not seen in recent weeks.
The setup offers a defined risk-reward profile with clear invalidation at $0.43 support, while the upside target provides the favorable ratio sophisticated traders seek.
Saad Ullah
