๐ XLM Forms Bullish Pennant โ Breakout Incoming?
The price of Stellar is moving inside a bullish pennant pattern, which is created by linking the highs and lows of two trendlines. Since this pattern develops during a strong upward price trend and a breakout suggests that the upward momentum will continue, it is favourable to the bulls. By Thursday's time, XLM is trading at around $0.42 inside the pattern.
Stellar pricing is preparing to continue its upward trajectory by trading within a bullish pennant formation.
In the range of $0.40 to $0.36, XLM might be acquired by casual investors.
With favorable financing rates and diminishing retail speculation, on-chain data and derivatives point to a possible bullish continuation.
As of this writing on Thursday, the price of Stellar (XLM) is $0.42, indicating that it may continue to trade in a bullish pennant formation. Positive financing rates and increasing optimistic bets bolster the bullish narrative, while on-chain and derivatives statistics imply that regular traders who have been sidelined may be making place for smart money accumulation.
As a side investment, you might consider buying XLM between $0.40 and $0.36, which are support levels. A tighter stop loss would be placed below $0.35, which is its 50-day Exponential Moving Average.
It is possible that XLM's recent climb might reach its all-time high of $0.52 on July 18 if the price breaks above the pennant pattern. Gains might be extended towards its November high of $0.63 if this level is closed successfully above.
The daily chart shows the Relative Strength Index (RSI) at 54, suggesting that bullish momentum is gathering steam after rebounding off its neutral level of 50 and trending higher.
But if XLM does see a correction, the fall might go all the way to its 50-day exponential moving average (EMA) at $0.35.
