according to the materials from the site - By 36crypto
According to crypto analyst Ali, Stellar (XLM) is demonstrating a bullish inverted 'head and shoulders' pattern, which closely resembles the price model of XRP observed earlier this year. The left shoulder formed in January, the head in late May, and the right shoulder has been forming since August.
This pattern has attracted attention, as similar patterns in the past have led to significant rallies.
Currently, the price of XLM is $0.4454, representing a decrease of 2.07% over the last 24 hours. Even accounting for the pullback, the price is still near the neckline of $0.50— a critical resistance level that will pave the way for further growth if broken with significant trading volume.
The breakout of XRP from a nearly identical configuration earlier this year triggered double-digit growth, and many speculated that XLM would follow suit.
Analysis using Fibonacci extension levels indicates potential growth targets in the event of a breakout. The 1.618 level is at $0.71, and the 1.786 mark is near $0.77, providing clear targets for bullish traders. These levels will only become likely with a significant increase in momentum after breaking the neckline.
Failure to overcome $0.50 may shift market sentiment towards caution with a possible pullback to $0.40 or even $0.36. These areas acted as strong support during previous downturns and may serve as stabilization points before any attempts to resume growth.
The similarity between the current XLM chart and the previous bullish movement of XRP is generating significant interest among market participants.
Traders are now closely watching for a daily close above the neckline, as this would confirm the pattern and increase the likelihood of a sustained upward movement towards the projected targets.
The price dynamics of Stellar are approaching a decisive moment, with resistance at $0.50 serving as a gateway to higher levels. A confirmed breakout could set the stage for a rally to $0.71 and $0.77, while a bounce from this point could lead to retesting lower support levels.
The upcoming sessions are likely to show whether XLM can replicate the momentum achieved by XRP earlier.
With us (in this group!), it is generally the case that those (subscribers!) who are in search of fresh and relevant news do not want to browse dozens of different sites and news publications, but can afford to read all the most interesting news in one news feed!!! 😉
Enjoy your viewing!!! 😊
