XLM trades above $0.4136 after breaking out from a bullish flag pattern on the 4 hour chart.
The breakout projects a rally toward $0.75 with key resistance near $0.52 and $0.6607 ahead.
Volume spikes during the breakout suggest strong buying interest that could sustain upward momentum.
Stellar Lumens (XLM) is trading at $0.4377, down 0.08% in the latest 4-hour session, after breaking out of a bullish flag pattern. Chart analysis shows potential for a move toward $0.75 if upward momentum continues.
https://twitter.com/ali_charts/status/1955041790500933864 Bullish Flag Breakout and Price Context
The XLM/USD chart on Coinbase reveals a sharp rally from late June to mid-July, peaking near $0.52. After the peak, the price consolidated within a downward-sloping flag pattern, holding above key Fibonacci retracement levels.
The breakout from the flag occurred around August 7, with price pushing above the 0.786 Fibonacci retracement level at $0.4136. Current price action is consolidating slightly above this breakout zone, suggesting market participants are assessing the next move.
Measured move projections from the flag pattern point to the $0.75 area as a potential target, aligning with the 1.272 Fibonacci extension level at $0.6607 and surpassing the previous swing high.
Technical Levels and Fibonacci Structure
The Fibonacci retracement grid on the chart is drawn from the recent rally's low near $0.2176 to the July high near $0.52. The 0.618 retracement at $0.3725 served as a strong support during the flag’s formation, preventing deeper declines.
Intermediate resistance is located at $0.52, which is both the July peak and the 1.0 Fibonacci extension level. Clearing this resistance would open the path toward the $0.6607 zone, with the $0.75 target representing the projected completion of the breakout move.
Price movement remains within an upward-sloping channel post-breakout, with higher lows supporting the current bullish trend. Market watchers note that holding above $0.4136 is critical for sustaining upside momentum.
Momentum and Market Question
The chart pattern and Fibonacci targets raise the question: will Stellar Lumens maintain momentum long enough to reach the projected $0.75?
Volume spikes during the breakout phase suggest renewed buying interest, but follow-through is required to confirm the trend extension. A retest of $0.4136 could occur before a continuation move, providing another potential entry point for market participants.
If momentum persists, the bullish flag breakout could represent a mid-term trend continuation within a broader upward structure. This would position XLM for not only the $0.75 target but also potential extensions beyond if demand remains strong.
As of the latest chart data, the breakout structure remains intact, with price consolidating above its critical support zone. Traders and investors are closely watching the next few sessions for confirmation of follow-through toward higher resistance levels.
