Technical analyst xoom has shared insights about Stellar (XLM) price movements through their X post. The analysis outlines potential price trajectories as XLM tests major resistance levels and chart patterns.
Price Movement Analysis
The XLM token trades within a descending channel pattern on the daily chart. The upper boundary converges with the $0.40 resistance level. Market data shows this price point has served as both support and resistance throughout XLM’s trading history.
A series of exponential moving averages (EMA) form a ribbon indicator that slopes downward. The token price remains under this EMA ribbon formation. Trading volume stays subdued, suggesting market participants await clearer directional signals.
Potential Breakout Targets
Chart analysis reveals several price targets if XLM breaks above current resistance. The first target sits at $0.53, followed by $0.64 at the channel’s upper limit. A break from the long-term falling wedge pattern could drive prices toward the $0.80 to $1.00 range.
The analyst warns that failure to breach $0.40 may push prices lower. Support levels exist between $0.23 and $0.27, where previous buying activity emerged. These zones align with historical accumulation patterns.
Read also: Market Analyst Predicts That Kaspa (KAS) Price Will Hit $1 Sooner Than You Think—Here’s Why
Market Structure Setup
Current market structure shows XLM consolidating near the upper channel boundary. The EMA ribbon creates overhead resistance, while horizontal support forms around $0.35. Volume patterns indicate neutral market sentiment as traders evaluate directional bias.
The falling channel exhibits consistent lower highs and lower lows since December’s peak. This technical formation suggests continued price compression until a breakout occurs. The convergence of multiple technical factors at $0.40 reinforces its role as a decisive price level.
The analyst’s tweet emphasizes their long-term perspective that sub-$1 price action represents transitional movement. Their analysis combines multiple timeframes to identify key technical levels that may influence future price direction.
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