Stellar (XLM) has recently captured significant attention in the crypto market, experiencing a notable price surge driven by a blend of technical breakouts and historical market trends. This renewed interest has sparked discussions among traders and analysts about its near-term potential and the critical levels to watch.
XLM's Bullish Resurgence and Expert Outlook
Stellar's price recently surged by 10%, pushing it to $0.4011, accompanied by a substantial 130% increase in daily trading volume. This significant upward movement is primarily attributed to a technical breakout from a falling wedge pattern, a strong bullish signal. Adding to this optimism is October's historical tendency for positive performance in the broader crypto market, with ten out of the last twelve Octobers recording gains. Crypto experts on social media platforms are reinforcing this positive sentiment, with several analysts predicting XLM could target the $0.50 to $0.56 range, potentially leading to a mid-term rally of 60% to 70% if key retest levels are successfully held.
Critical Levels and Cautionary Indicators
Despite the prevailing bullish sentiment, XLM faces crucial resistance levels and indicators that suggest caution. Immediate resistance is observed near $0.4090, with a pivotal daily close above $0.4150 being key to unlocking a further 25% rally towards $0.5150. However, the Supertrend indicator currently remains bearish, flashing red above the current price, and the Average Directional Index (ADX) sits at 18, indicating limited trend momentum below the 25 threshold. Furthermore, a notable sell wall is identified at $0.445. Despite these cautionary signals, liquidation data reveals a dominant bullish bias, with a significant volume of long positions built between $0.3809 and $0.4129, reflecting traders' continued confidence in an upward trajectory.
