This pattern is a bullish reversal setup that suggests a potential shift from a downtrend to an uptrend. Earlier this week, the analyst pointed out that the pattern’s right shoulder was forming and the neckline sat around the $0.29 mark.
According to his post, a breakout from this formation potentially eyed a 30% rally toward the $0.39 resistance, lost during the February retraces.
XLM To Repeat Historical Tendencies?
Analyst Rekt Capital highlighted that the cryptocurrency confirmed the end of its multi-month downtrend and a breakout from its Downtrending Channel.
Per the post, if XLM weekly closes above its key area, between $0.27-$0.29, any dips into this zone would figure as a successful reclaim of the area as support to support a move to higher regions.