Stellar (XLM) Breaks $0.293 Resistance, Eyes 10% Gain

Stellar (XLM) has recently shown signs of a bullish reversal, with its price breaking above the $0.293 neckline. This technical breakout has drawn the attention of traders and analysts, who are closely monitoring the potential for further upward movement. The current price of $0.3031 is just above this critical resistance level, and if it holds, it could pave the way for significant gains. Analysts are watching the next few trading sessions to determine if Stellar can confirm this reversal or if it will slip back into a consolidation phase.

Crypto analyst Ali Martinez has identified a possible inverse head-and-shoulders pattern on the XLM/USD chart, which is typically associated with a bullish reversal. The neckline resistance at $0.293 has been breached, and if this breakout is confirmed, it could unlock higher price targets based on Fibonacci extension levels. These targets include $0.324, $0.341, $0.367, and potentially $0.391. However, if XLM fails to maintain its position above this key resistance, it could revisit lower support zones at $0.255, $0.245, and $0.236. A volume spike around the breakout area would help validate the bullish momentum, but without it, the breakout risks being a false signal.

On-chain metrics provide additional insights into investor behavior. Between late November and mid-December, massive outflows coincided with a steep rally from $0.10 to $0.60, indicating that many investors took profits near the top. Subsequent inflows during January and April suggest strategic buying during price dips. Since February, netflows have remained negative, pointing to steady selling pressure. However, recent inflow spikes near the $0.38 mark could indicate renewed accumulation, which often precedes sustained upward moves.

Technical indicators are also reinforcing the bullish case. The MACD line has crossed above the signal line, with a growing positive histogram, reflecting rising momentum. The RSI stands at 67.55, just below the overbought level of 70. While momentum is clearly strong, any push above 70 warrants caution, as it could signal a near-term pullback. The combination of the breakout pattern and the bullish indicators suggests that XLM is in a favorable position for a sustained upward movement. However, traders should remain vigilant and adapt their strategies as market conditions can change rapidly.