Stellar (XLM) is currently undergoing a retest phase to pave the way for a bullish revival amid a broader market pullback. With a market cap of nearly $3 billion, Stellar, a significant competitor to XRP, is displaying signs of a recovering price trend following a significant correction period over the past few months. Despite trading at discounted levels compared to its recent highs, the reversal in the XLM trend has caught the attention of savvy investors in the market. The question remains – will Stellar’s resurgence lead to a surge that outperforms Ripple in the coming year?
Following a peak at $0.15, Stellar experienced a decline in dominance at key levels, leading to a downtrend that brought the price down to $0.083 and formed a falling channel pattern over time. However, as bullish momentum picks up, the XLM price has broken above the overhead trendline, accompanied by a recovery that reached the 50% Fibonacci retracement level at $0.115, marking a 35% increase before experiencing a slight pullback. The ongoing pullback is currently testing the 23.60% Fib level at $0.097, with buyers stepping in at the psychological $0.10 mark. Furthermore, the combination of the breakout and pullback forms a bullish flag pattern, hinting at the potential for further gains in the near future.
With a 1.11% intraday gain, the market is anticipating a reversal rally that could extend the uptrend, signaling a buying opportunity for traders on the sidelines. From a technical standpoint, indicators such as the RSI line showing an uptick from the halfway mark and a positive crossover in the Stochastic RSI lines in the oversold zone suggest an increase in buying pressure and support the bullish outlook for Stellar. As the bulls make a comeback for Stellar, there is speculation about whether XLM will reach the $0.15 mark in the near future.
The formation of a bullish flag pattern following a channel breakout indicates a high probability of continued upward momentum for Stellar. The recent intraday growth reinforces this revival, especially after testing the 23.60% Fib level. Therefore, it is likely that Stellar will reach a new 52-week high this year as the overall market conditions improve. According to Fibonacci levels, the bullish run for XLM could challenge the 78.60% and 100% Fib levels at $0.1377 and $0.1576, respectively. Additionally, in the altcoin season, the 1.618 Fib level at $0.23 could be a realistic target for Stellar to aim for in the coming months.
In conclusion, Stellar’s current retest phase and bullish revival potential are garnering attention in the market, with indicators pointing towards a positive outlook for the cryptocurrency. As the broader market recovers, Stellar’s upward momentum could lead to significant price gains, potentially outperforming its competitor Ripple. Traders and investors are keeping a close eye on Stellar’s price movements, as a breakout above key resistance levels could signal further upside potential for XLM in the near future.
