Saad Ullah
Stellar (XLM) token is catching traders' attention after months of underwhelming performance. Technical patterns on the dominance chart hint at a possible major turnaround that could see XLM reclaim significant market share against other cryptocurrencies. This potential breakout represents what could be one of XLM's most impressive rallies in years.
Technical Analysis Points to Major Breakout
The bullish case for XLM dominance centers around a long-term descending channel that appears to be nearing its end. After sustained decline, the token's market share seems to be finding its footing near historical lows.
Crypto trader recently spotlighted this setup, highlighting how XLM dominance could climb toward the 0.618–0.786 Fibonacci retracement zone. This would translate to dominance levels between 0.83% and 1.44%, representing a massive 370% increase from current positioning.
The technical roadmap shows XLM dominance currently hovering around 0.20–0.25%, well above the critical support zone near 0.11% but still far from previous highs.
Key Levels and Price Targets
Current market conditions place XLM at a crossroads. The dominance chart reveals several important levels:
- Support floor: ~0.11% (multi-year low)
- Present range: 0.20–0.25%
- First target: 0.83% (0.618 Fibonacci)
- Extended target: 1.44% (0.786 Fibonacci)
Breaking above current resistance could trigger the anticipated 370% dominance rally, fundamentally shifting how XLM performs relative to other altcoins.
Market Dynamics Supporting the Bullish Case
Several factors align to support this optimistic outlook. Historical patterns show XLM dominance often rebounds strongly after extended periods of decline. The RSI indicator suggests oversold conditions may be reversing, providing technical confirmation for a potential breakout.
Additionally, Stellar's focus on cross-border payments and financial infrastructure could attract renewed institutional interest as the broader crypto market matures. This fundamental backdrop may provide the catalyst needed for sustained dominance growth.
However, failure to hold above the 0.11% support level would likely invalidate this bullish scenario and could lead to further consolidation.
Saad Ullah
