Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
While everyone’s attention was fixed on Bitcoin, Ethereum and XRP, Stellar’s token, XLM, has been trading away from the spotlight for months. But the latest price structure reveals an intriguing pattern, to ignore which would be a crime.
As became evident thanks to this analysis by Ali Martinez, the 12-hour chart projects a classic head and shoulders setup, with the left shoulder formed back in February, the head marked by a deep low in April and the right shoulder shaping up right now.
As for the neckline, it is just under $0.50 as the essential level for such structures.
Right now, XLM is sitting at about $0.38, which is where it has been maintained over the last week. From there, the bull scenario remains clear; should XLM break through the neckline, it could go beyond $0.50, even hitting targets like $0.62; $0.7; $0.83 and even as high as $1.
Those levels line up with historical pivot zones, where liquidity tends to cluster for the Stellar token.
But if buyers cannot hold the $0.3s and the structure loses its symmetry, the bullish case will fade fast. What looks like a breakout setup today could turn into another stalled XLM rally tomorrow.
Right now, it looks like the risk-to-reward ratio is benefiting the bulls, especially with the overall market feeling better and more liquidity coming back to altcoins.
If you have been keeping an eye on Stellar’s slow progress while XRP has been all over the news, this could be the time when XLM gets its own chance to show why it is worth a double-digit percentage gain heading into the next quarter.
