Can XLM Price’s $1 Target Sustain Amid Bearish Momentum?

Stellar’s XLM price dropped by almost 8% in the last 24-hours, nonetheless technicals showed some bullish reversal signs. Targets of $0.5666, $0.6242, and $1 are in focus as traders watch key support at $0.40 to sustain the upward momentum.

Analysts point to strong technical patterns and growing blockchain adoption as driving forces behind XLM’s rally.

XLM Price Technical Analysis from Market Analysts

According to popular crypto analyst VipRoseTr, the breakout from a falling wedge is a critical point for XLM’s price action.

According to the analyst, the $0.40 level is a good entry for buying with potential targets at $0.5666, $0.6242, and $1. VipRoseTr says that the setup is a bullish continuation, meaning that a breakout of the $0.45 level will signal the continuation of the upward move.

Other market analysts concur with this view, noting that if the trend continues, XLM may reach its 52-week high. They note that the breakout matches the broader market mood that has been bullish on large-cap alts, particularly those that can be used in the real world like Stellar.

XLM Price Chart: Bullish Flag Formation

The XLM/USDT 4-hour chart showcases a bullish flag pattern, a reliable continuation signal.

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This pattern consists of a sharp upward movement, known as the flagpole, followed by a consolidation phase between two downward-sloping trendlines. The setup suggests that once consolidation ends, the price is likely to break out in the direction of the previous trend.

The chart  projects $0.60 as the next target based on the flagpole’s height. Also, the RSI at 46.50 is turning upward from the neutral zone, pointing to stronger buying interests. These signals indicate high chances of further upside if price pierces through the upper boundary of the flag.

XLM Coin Key Support and Resistance Levels

These levels are significant as XLM gets closer to important price levels. VipRoseTr states that $0.40 level is crucial in supporting further upside movement. While $0.42 is acting as the bottom end of the bullish flag. If price cannot hold above these levels it may test $0.35 another level identified by analysts.

For the resistance side, $ 0.45 is considered as the next level to break for the bullish trend to be confirmed. If price breaks above this level, XLM could easily rise to $0.50 and $0.60 in the short term. More extended price targets of $0.80 and $1 have also been set by analysts if the rally continues.

Market Sentiment and Stellar’s Role in Blockchain

Stellar has received positive market sentiment due to its performance in the sphere of blockchain development. Some of the current positive price movement for XLM has been linked to it being involved in CBDCs and cross border payment systems.

For example, Stellar has united with Fonbnk and offers the ability to turn prepaid SIM-cards into digital debit cards. These things demonstrate real blockchain solutions.

XLM’s 35% weekly gain has drawn considerable attention. Following the recent transfer of $36 million worth of XLM to exchanges, short-term price fluctuations may occur. This activity suggests long-term holders are taking profits after Stellar’s 300% appreciation over the past three months.

Market analysts remain optimistic, suggesting that if the current upward trend continues, XLM could potentially reach $1 this quarter. This positive outlook has encouraged analysts to predict that maintaining the current momentum may drive XLM to the $1 mark within this timeframe.