Crypto analyst Ali Martinez (@ali_charts) has identified a bullish flag pattern on the Stellar (XLM) price chart, suggesting that the asset may be preparing for a substantial breakout.
In his analysis, Martinez notes that if XLM breaks out of this pattern, it could trigger a strong rally, potentially pushing the price to $1.60, a new all-time high.
#Stellar $XLM is forming a bullish flag. A breakout above could trigger a strong rally to $1.60! pic.twitter.com/LcPW4ttRVs
— Ali (@ali_charts) March 5, 2025
A bullish flag is a technical pattern that follows a strong price surge. It consists of an upward movement (flagpole), followed by a consolidation phase with downward-sloping parallel lines (the flag). Breaking this resistance signifies a potential continuation of the previous uptrend once resistance is broken.
Martinez’s chart shows that XLM has been trading within a descending channel after a sharp increase in late 2024. The price is currently near the upper boundary of this flag, indicating that a breakout could be imminent. His post has gained attention among traders for potential XLM upward momentum.
Key Technical Indicators Support the Bullish Case
Beyond the pattern itself, multiple technical indicators support Martinez’s outlook. The TD Sequential Indicator, a tool used to identify potential trend reversals, has recently flashed a buy signal for XLM.
This indicator has historically preceded strong price movements in the past, and similar signals have led to price increases in other assets. Another recent analysis by Martinez highlighted this buy signal as a reason XLM could soon see upward movement.
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Price Targets and Potential Scenarios
If XLM successfully breaks above the flag’s resistance level, Martinez projects a target of $1.60. The asset is currently trading at $0.3, and Martinez’s target is 433.33% higher than the current level
However, for this bullish scenario to materialize, XLM must first clear the resistance zone around $0.42, which has acted as a ceiling for the price in recent months. A decisive close above this level with strong trading volume, would confirm the breakout.
If XLM fails to break out, it could remain within the consolidation phase, delaying a potential uptrend. A drop below key support levels, particularly around $0.26, could invalidate the bullish flag setup and lead to further downside.
Beyond technical indicators, Stellar has continued to build fundamental strength. Recent discussions have also highlighted Stellar’s growing partnerships. While some investors have overlooked XLM in favor of other cryptocurrencies, an XRP advocate recently emphasized that Stellar should not be ignored , as strategic developments could support XLM’s long-term growth.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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