Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Stellar (XLM) Gains Momentum Following Key Breakout – Is a Rally on Horizon?

Stellar (XLM) Gains Momentum Following Key Breakout – Is a Rally on Horizon?

CoinsProbeCoinsProbe2025/05/09 05:33
By:Nilesh Hembade

Date: Fri, May 09, 2025 | 04:15 AM GMT

The cryptocurrency market continues to build on its recent strength, with Bitcoin (BTC) and Ethereum (ETH) leading the charge. In the past 24 hours, BTC has crossed the $102K mark while ETH has surged more than 15% and is now trading above $2200 — its highest level in months. This bullish momentum is also lifting the sentiment across major altcoins , including Stellar (XLM).

Stellar has jumped over 8% today, bringing its monthly gains to 34%. Now, the latest price action suggests there could be more upside ahead.

Stellar (XLM) Gains Momentum Following Key Breakout – Is a Rally on Horizon? image 0 Source: Coinmarketcap

Falling Wedge Breakout Signals Reversal

Looking at the daily chart, XLM had posted a remarkable rally of over 575% back in late 2024. After peaking at $0.63 on November 24, the altcoin entered a strong corrective phase. During this period, it formed a falling wedge pattern, which pulled the price down by nearly 68%, reaching a low of $0.20 on April 7, 2025.

Stellar (XLM) Gains Momentum Following Key Breakout – Is a Rally on Horizon? image 1 Stellar (XLM) Daily Chart/Coinsprobe (Source: Tradingview)

Since then, Stellar began showing signs of a reversal. The key moment came today when XLM successfully broke out of the falling wedge pattern, a bullish indicator that typically signals the end of a downtrend and the beginning of a new upward movement. The breakout took place near the $0.27 mark, as the price moved above the descending resistance trendline.

Following the breakout, XLM surged to $0.29 and is now testing the 200-day moving average — a crucial level that often determines long-term trend direction.

What’s Next for XLM?

From here, if Stellar manages to close firmly above the 200-day moving average, currently around $0.31, it could spark a strong rally. The next key resistance levels lie at $0.37, followed by $0.51 and ultimately the previous high near $0.63. Reaching that top level would mark a 117% increase from the current price, offering a potentially rewarding upside for traders and investors.

However, if the price fails to sustain above the 200-day MA and faces rejection, a short-term pullback toward the breakout level around $0.27 could occur. This would not necessarily be bearish, as a retest of the breakout zone could offer a solid opportunity for buyers to re-enter before another leg higher.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Core Scientific Nets $580M in Q1 Despite Revenue Miss, Eyes AI and HPC Future

Nasdaq-listed Bitcoin miner Core Scientific Inc. has reported a net income of $580 million for the first quarter of 2025, more than double the $210 million recorded during the same period last year. However, the firm fell short of analyst expectations for revenue, signalling the growing impact of industry shifts and operational transformation.

DeFi Planet2025/05/09 12:00
Core Scientific Nets $580M in Q1 Despite Revenue Miss, Eyes AI and HPC Future