Stellar XLM Eyes $0.50 Breakout as Descending Wedge Tightens

Stellar (XLM) is showing signs of a potential short-term breakout from a descending wedge pattern on lower time frames, drawing attention from technical analysts and traders. Market analyst firm CryptoAlphas has highlighted that the tightening wedge structure suggests a price target of $0.50, representing a substantial increase from its current trading level of approximately $0.409 [1]. The pattern’s convergence at key support and resistance levels is being closely monitored, as a confirmed breakout could propel the token into a new price range and signal growing market confidence in its long-term prospects.

The current price action is supported by rising on-chain momentum, including a 211.20% surge in 24-hour trading volume, indicating strong buyer participation [1]. Momentum indicators such as the RSI and MACD also reflect a favorable bullish setup. The RSI is currently at a neutral level of 52.38, with the potential for a bullish MACD crossover reinforcing the expectation of further upward movement [1]. Key support levels identified by analysts include the $0.35–$0.36 and $0.31–$0.33 ranges, while resistance is currently clustering near $0.43. A breakout above this level could drive XLM toward $0.53–$0.58, extending the potential rally even further [1].

Tom Tucker, another analyst, has echoed the bullish sentiment, noting that XLM has held above the $0.33 neckline following a 140% rally and has reclaimed the 20 EMA, with the EMA20/SMA50 crossover remaining intact [1]. He emphasized that if the current momentum continues, the token could rise to $0.52, with the $0.36 level acting as a critical support zone that has already held firm following an 8% rebound [1].

The broader market environment remains mixed, with many altcoins still searching for a clear direction following recent corrections. However, Stellar’s technical profile has gained clarity, making it a focal point for traders looking for short-term opportunities. The market is now waiting for a decisive move—either a breakout above $0.43 on strong volume or a pullback below key support levels—that will confirm the next phase of the trade. A strong close above the $0.43 resistance level on high volume remains the key technical trigger for the projected bullish scenario [1].

Source: [1] Stellar Gears Up for Breakout — $0.50 Target in Sight as Wedge Tightens (https://zycrypto.com/stellar-gears-up-for-breakout-0-50-target-in-sight-as-wedge-tightens/)