Peter Smith
While most crypto traders focus on Bitcoin's movements, Stellar (XLM) is quietly building one of the most compelling bullish setups in the altcoin space. Trading at $0.3933 with a modest 0.57% daily gain, XLM appears poised for a significant breakout that could catch many investors off guard.
Technical Pattern Points to Major Reversal
The current price action reveals something interesting brewing beneath the surface. Analyst @ali_charts has identified a head-and-shoulders formation taking shape, with XLM currently developing what appears to be the right shoulder of this classic reversal pattern.
This isn't just any technical setup - head-and-shoulders patterns are among the most reliable reversal signals in technical analysis. What makes this particularly noteworthy is the positioning of the neckline resistance around $0.48-$0.50, which represents a critical make-or-break level for XLM's next major move.
The Path to $0.70 and Beyond
Should XLM manage to break above the neckline with convincing volume, the technical targets become quite ambitious. The initial rally could push prices toward the $0.64-$0.70 range, representing potential gains of over 75% from current levels.
But that's not where the story ends. If broader market conditions remain supportive and momentum builds, XLM could extend its rally toward the psychological $1.00 level - a move that would deliver triple-digit returns for early positioned traders.
The key support zone to monitor sits between $0.34-$0.35. A breakdown below this area would essentially invalidate the bullish thesis and force traders to reassess their outlook.
For now, XLM holders are playing a waiting game, watching to see if this textbook pattern will deliver the breakout that technical analysis suggests is possible.
Peter Smith
