- XLM price rally dropped into a descending triangle pattern after hitting a local top at $0.60.
- A breakout from the pattern’s hypotenuse at $0.51 suggests a 25% upswing.
- The bullish outlook will be invalidated if Stellar loses $0.46 as support.
XLM price showed a slowdown in bullish momentum after surging approximately 100% since February 1. Now, Stellar awaits for volatility to resume its uptrend.
XLM price poised for a breakout
XLM price hit a pause after reaching $0.60 on February 13. Since then, Stellar entered a consolidation period. It formed a series of lower highs while the horizontal support at $0.46 has rejected any downward pressure.
By drawing a trendline around the swing highs and another at the underlying support, a descending triangle seems to form.
As XLM price moves closer to the triangle’s apex, the odds for a bullish impulse increase. If Stellar can slice through the $0.51 resistance, then the descending triangle forecasts a 25% upswing to $0.60.
The target is determined by measuring the distance between the pivot high at $0.60 and the horizontal support at $0.46 and adding it to the breakout point.
XLM/USDT 1-hour chart
It is worth mentioning that there are instances where descending triangles formed as reversal patterns during uptrends. Therefore, investors must pay close attention to the $0.46 support level.
If XLM price manages to slice through this demand barrier, then a 25% pullback to $0.34 can be expected.
Share
