Stellar (XLM) appears to be stabilizing near key support levels. With technical signals showing that if momentum continues to build, an upside breakout is likely.
Stellar is a decentralized payment network that enables fast and affordable cross-border transactions. At press time, the coin is trading at $0.1708 with an increase of 2.05% over the past 24 hours.
According to the data from TradingView, Stellar has followed a sideways trading pattern with price fluctuating in the range of $0.155-$0.17 since it fell sharply earlier this year. This type of pattern typically indicates that a consolidation period has formed, thus indicating a potential breakout.
Higher lows are forming in recent candlestick patterns, giving evidence that buyers are gaining an increased level of control. Additionally, volume increases during upward price moves indicate increased buyer interest as shown on the On-Balance Volume (OBV) indicator.
Therefore, the OBV indicator shows increasing accumulation by buyers rather than ongoing selling pressure from sellers.
If the price continues to rise above the current resistance of $0.17 and can stay there for any significant amount of time, it is possible for buyers to push prices to between $0.18 and $0.19 (potentially 10-12% upside).
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Since there have been many reported updates from Stellar’s official account on X referring to the activity occurring in their ecosystem, it has established positive sentiment for the company as they grow and add events (e.g., Stellar House) to their portfolio.
The positive press they have garnered will go a long way in developing confidence among potential new entrants into the market. As things stand at the present time, Stellar has established a price range within which it wants to grow.
In conclusion, technical indicators show that there is potential for a bullish breakout as indicators are beginning to improve and the support levels are steady. If Stellar confirms an upward move and crosses above $0.17, it may be able to reach higher prices in the near future.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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