Stellar (XLM) Eyes Breakout as Bullish Reversal Pattern Takes Shape

Momentum around Stellar’s price action is building as the asset shows signs of breaking free from its prolonged consolidation.

With the broader altcoin market gaining traction during “Uptober,” traders are closely monitoring the coin’s recent technical developments, which suggest the potential start of a new bullish phase.

A confirmed breakout above resistance could pave the way for renewed optimism, while a sustained hold above key support remains critical for trend validation.

Breakout Pattern Signals Shift in Momentum

According to analyst Mikybull Crypto, Stellar has formed a descending wedge pattern, a classic bullish reversal structure that often precedes strong upward moves. The breakout above the wedge’s upper trendline highlights renewed buying interest, further supported by increasing trading volume.

This technical formation suggests that the market may be preparing for a rapid price acceleration or, as the analyst described it, a potential “god candle” moment.

Source: X

The 50-day moving average is now providing dynamic support near the breakout zone at $0.38, aligning with prior resistance that has turned into a foundation for higher levels.

Mikybull emphasizes that maintaining price action above this area is essential to confirming continuation toward the $0.48–$0.50 range, the previous local high where sellers have historically taken profits. A successful retest of this zone could validate the early signs of a medium-term trend reversal.

Consolidation Gives Way to Renewed Buying Interest

As per the latest market data, Stellar is trading around $0.40, with a market capitalization of $12.87 billion and 24-hour trading volume near $295 million. Although the token has seen a mild 0.63% decline in the past 24 hours, its broader price structure remains stable, supported by consistent accumulation from market participants.

Source: BraveNewCoin

Following weeks of consolidation between $0.38 and $0.42, price stability near the lower end of this range indicates underlying strength. Should buying pressure persist, the coin could soon test the upper boundary of resistance, where a confirmed breakout may initiate a broader recovery phase.

The pattern’s resilience also aligns with improving sentiment in the altcoin market, particularly as Bitcoin continues to strengthen through October.

Technical Indicators: Gradual Recovery Reinforces Bullish Bias

At the time of writing, XLM trades at $0.4012, showing steady momentum despite short-term pullbacks. The Chaikin Money Flow (CMF) indicator currently reads 0.05, signaling moderate buying pressure and positive capital inflows into the market. This steady accumulation suggests that traders are positioning early in anticipation of an upward breakout.

Source: TradingView

Additionally, the MACD indicator reflects growing bullish sentiment, with the MACD line (0.0054) positioned above the signal line (0.0016) and a positive histogram at 0.0038. This technical alignment indicates that momentum remains tilted toward the upside.

However, sustaining these signals will depend on whether the coin can hold above its 20-day moving average and establish a firm close beyond the $0.42 resistance zone.