Signal emerges from Head and Shoulders arrangement suggesting potential surge toward $1 for XLM currency news
Stellar (XLM), the eighth-largest cryptocurrency by market cap, is showing signs of a potential price surge, according to several analysts. The cryptocurrency is currently trading at $0.38, as noted in a TradingView chart shared by Crypto Arab, marking a 0.98% increase over the last 24 hours.
Analyst Ali from X identified Stellar forming the right shoulder of a bullish head and shoulders pattern, which is typically regarded as a powerful reversal indicator in technical analysis. The chart illustrates the symmetry of the formation, with the left shoulder in February, the head forming in April, and the right shoulder developing into September.
If Stellar breaks the neckline resistance, the price could potentially advance toward the $1.00 level, according to the Fibonacci extension levels suggested by analysts. The chart depicts a descending triangle breakout that has shifted into a bullish retest zone, indicating a consolidation phase forming after an extended downtrend for XLM.
The retest near $0.36 acted as a pivot, allowing XLM to regain momentum and push upward. Should XLM maintain trading above $0.36 in the near term, the path to higher valuations remains valid.
Momentum indicators support the breakout thesis for XLM, with key checkpoints at $0.45, $0.56, and $0.70. If volume supports the breakout, Stellar could experience accelerated momentum in the coming weeks, potentially reaching as high as $0.70, representing nearly a 90% surge.
Investors are monitoring closely to see if increased volume will fuel the anticipated move for XLM. With an available supply of 31.74 billion tokens, Stellar maintains a strong presence in the top 20 cryptocurrencies by market cap, with a total market capitalization of $11.93 billion, supported by a daily trading volume of $280.8 million.
Analysts regard this as a significant shift in trend for XLM, suggesting that the potential climb could mark a turning point for the cryptocurrency's price action. The dotted projection line in the chart marks a potential parabolic move should bullish conditions sustain.
As of September 10, Stellar's price was recorded at $0.38. If the breakout is confirmed, it could signal a promising future for the cryptocurrency. It is essential to keep a close eye on Stellar's price action and volume to determine the validity of this potential price surge.
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