Stellar XLM Displays Descending Triangle Pattern, Signals Potential 20% Move

• Stellar XLM’s chart reveals a descending triangle pattern with lower highs and consistent rejections, suggesting technical pressure and strongly focused market activity.
• Technical indicators, including RSI at 37.20 and a negative MACD, clearly support the analysis of a potential 20% price movement for Stellar XLM.
• Declining volume and repeated testing of support near $0.27 set the stage for a possible shift, with market participants tracking price trends.

Stellar (XLM) traders are observing a key technical pattern as the asset trades near $0.27. Recent analysis suggests a descending triangle may drive a 20% price move. Critical support levels draw close attention.

Descending Triangle Formation

Ali_charts shared a tweet stating that XLM consolidates within a descending triangle. The tweet notes a potential 20% price move if the pattern completes. Analysts view the pattern as critical in setting future price directions. Market participants are closely monitoring this pattern for potential breakdowns or reversals in trends.

The technical chart displays a well-defined descending triangle. The formation shows lower highs and steady horizontal support. The pattern indicates that sellers defend a key price level between $0.274 and $0.275. This formation may signal a continuation of the current downtrend if the support level fails.

Technical Indicators and Market Sentiment

Stellar trades at approximately $0.2697 at the time of writing amid a daily decline near 2.10%. The RSI stands at 37.20, nearing oversold territory. This reading indicates that selling pressure might be reaching exhaustion. Traders use the RSI to gauge market sentiment during consolidation phases.

The MACD remains below zero with a small red histogram indicating caution. Market participants assess these indicators to decide their next moves.

Source : TradingView

Volume has declined during this consolidation phase. Trading activity remains moderate as sellers and buyers balance pressure. A surge in volume could confirm a clear breakout or breakdown.

Potential Price Scenarios

Price may drop toward the $0.22 to $0.24 range if support at $0.265 fails. This bearish scenario follows a series of lower highs and declining volumes. Conversely, a breakout above the trendline could push XLM toward the $0.30 to $0.32 range.

The technical outlook points to decisive price actions. Strong trader success depends heavily on tracking crucial boundary levels in the market. During the latest trading period, the volume exceeded $170 million.