• XLM price rally dropped into a descending triangle pattern after hitting a local top at $0.60.
  • A breakout from the pattern’s hypotenuse at $0.51 suggests a 25% upswing.
  • The bullish outlook will be invalidated if Stellar loses $0.46 as support.

XLM price showed a slowdown in bullish momentum after surging approximately 100% since February 1. Now, Stellar awaits for volatility to resume its uptrend.

XLM price poised for a breakout

XLM price hit a pause after reaching $0.60 on February 13. Since then, Stellar entered a consolidation period. It formed a series of lower highs while the horizontal support at $0.46 has rejected any downward pressure.

By drawing a trendline around the swing highs and another at the underlying support, a descending triangle seems to form.

As XLM price moves closer to the triangle’s apex, the odds for a bullish impulse increase. If Stellar can slice through the $0.51 resistance, then the descending triangle forecasts a 25% upswing to $0.60.

The target is determined by measuring the distance between the pivot high at $0.60 and the horizontal support at $0.46 and adding it to the breakout point.

XLM/USDT 1-hour chart

XLM/USDT 1-hour chart

It is worth mentioning that there are instances where descending triangles formed as reversal patterns during uptrends. Therefore, investors must pay close attention to the $0.46 support level. 

If XLM price manages to slice through this demand barrier, then a 25% pullback to $0.34 can be expected.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

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