Stellar (XLM) Price Aims for 60% Upside Move - Bullish Breakout on the Horizon?

The price of Stellar (XLM) has been experiencing a downward trend since reaching its peak for the year on July 13.

However, it is currently trading within a continuation pattern, suggesting the potential for a significant price increase in the future.

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Overall Trend Remains Bullish

An analysis of the price action and wave count further supports the notion that the overall trend remains bullish, indicating the possibility of XLM reaching a new yearly high in the near future.

On the weekly time frame, there are important developments to consider.

XLM broke out from a 616-day descending resistance line in January, followed by an upward movement that accelerated in June. Though it cleared the $0.10 horizontal resistance area, it fell short of reaching the next resistance at $0.25, resulting in a high of $0.195 and a subsequent decline.

Currently, XLM is trading around $0.14, gradually approaching the $0.125 support area. The Relative Strength Index (RSI) on the weekly chart provides a mixed signal, indicating an undetermined trend.

According to the Elliott Wave theory, XLM's price is likely in the fourth wave of a five-wave upward movement, taking the form of a triangle pattern. If this analysis is accurate, it suggests that XLM has already reached a local low and is in the process of validating the triangle's support line.

As a result, a breakout from the triangle pattern is anticipated, with the price potentially rising toward the next resistance level at $0.25, representing a 60% increase from the current price.

**Bottom Line:**Overall, the technical analysis indicates that Stellar (XLM) is at a critical juncture, with a bullish breakout possible but a bearish trend looming if certain support levels are breached. 

XLMUSDT chart by TradingView