Stellar (XLM) is holding near $0.43 after experiencing a 5% drop in the last 24 hours, but its price has shown signs of potential upward movement. With strong trading volume and a classic bullish chart pattern emerging, traders are eyeing a breakout above the $0.50 resistance level. Analysts point to several factors supporting this move.
A recent analysis by crypto analyst Ali Martinez reveals an inverse head and shoulders pattern on the daily timeframe, suggesting a potential surge above the neckline at around $0.50. This structure could trigger prices to reach targets of $0.60, $0.72, and $0.77 based on Fibonacci extensions.
A crucial factor driving this bullish sentiment is Stellar’s growing user base. The network boasts 9.69 million active wallets, adding around 5,000–6,000 new addresses daily. This demonstrates increasing adoption and engagement with the Stellar platform.
While price movement is an important indicator of market trends, on-chain activity provides additional insight into XLM’s growth. Analysts like Steph Is Crypto highlight that this high user activity reflects fresh demand for the network.
Additional bullish signals come from past trading patterns. Analyst Peter Brandt previously recognized Stellar as a potentially promising asset, emphasizing the need to stay above the April low near $0.22 and break through the broader price range. Another influential voice, @Xfinancebull, attributed XLM’s recent gains to predictable chart signals and market sentiment at the time.
With these factors in play, XLM is poised for a breakout above the $0.50 resistance. The next few days will be crucial as traders watch the price action closely.