Stellar Lumens (XLM) breaks a descending wedge with analyst eyeing a 225% rise to $0.681.
RSI shows overbought conditions, but strong volumes suggest buyers' conviction in XLM's bullish trend.
XLM faces $0.25 resistance; breaking this level may target $0.30 and $0.681, with support at $0.15-$0.20 zones.
Stellar Lumens ($XLM) has had a robust upward trend, according to analyst Javon. At press time XLM was trading at $0.2333, up by 15.45% in the past 24 hours, signaling increased market interest.
The analyst predicts a 225% climb, targeting $0.681 as the next critical resistance level. This optimism is boosted by a breakout from a descending wedge pattern, which often indicates the end of bearish trends and the start of bullish momentum.
https://twitter.com/JavonTM1/status/1858291726525366353
Descending Wedge Breakout
Stellar Lumens recently exited a descending wedge pattern, a formation characterized by converging downward-sloping trendlines. This pattern is often associated with bullish reversals. The breakout near the wedge's apex, marked by a higher low, confirmed the trend shift.
Following this, XLM achieved a higher high, a critical indicator of sustained bullish momentum. Support levels have formed at $0.15 and $0.20, with this acting as a springboard for recent gains.
Key Indicators Show Overbought Conditions
The RSI has surged to 80.89, indicating overbought conditions. While this reflects strong momentum, it also suggests the potential for short-term retracements. Similarly, the MACD line, at 0.0266, remains well above the signal line at 0.0137, confirming bullish momentum. Notably, increasing histogram bars and trading volumes exceeding 371.57 million reinforce the conviction among buyers.
Resistance Levels and Future Trends
XLM faces immediate resistance near $0.25, with $0.30 identified as a medium-term target. Breaching these levels could bring $0.681 within reach, a key resistance aligned with historical peaks. However, overbought conditions may prompt minor pullbacks, potentially revisiting support around $0.20 or $0.18.
Source: TradingView
XLM has shown a steep upward trend, with notable price acceleration since early November. The breakout from $0.15 and $0.20 levels has turned them into strong support zones. Sustained volumes and momentum will be critical in determining XLM's ability to maintain its upward movement.
