Stellar (XLM) Price Displays Bull Flag, Potential Breakout Ahead?

XLM, the native digital asset of Stellar, a decentralized open-source blockchain network, shows signs of a potential price breakout.

This bullish trend is indicated by the formation of a bullish flag signal on the XLM chart, spotlighted by market analyst Ali Martinez.

Bullish Flag Signal Forms on XLM Chart

In a recent X post, Martinez said XLM could see a breakout targeting $1.8. His projection is based on the formation of a bull flag signal on the price chart.

A bull flag is typically formed when an asset moves in a strong upward trend followed by a consolidation period.

The price action forms a flag-shaped pattern with a bull element, which suggests a continued rising price movement once the consolidation phase is over.

Regarding XLM, the coin was trading at $0.3563, up 0.8% in the last 24 hours. The price reached a daily high of $0.365 before dropping to the current level.

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The recent price surge has pushed the market cap to $10.9 billion, making XLM the 12th-largest cryptocurrency.

The price of XLM experienced a rollercoaster in the past few months amid a downturn in the broader market.

Since reaching a high of $0.79, XLM has faced a severe downtrend. However, the price shows signs of recovery, with a weekly surge of 10.8%.

Can XLM Price Hit $1.8?

A $1.8 target for XLM will mark an all-time high for the digital currency. To meet this target, the price of XLM would need to increase by approximately 405% from current levels.

The price must break through critical support and resistance levels for this to happen.

Currently, XLM has formed a key resistance at $0.36. A move above this level will see the price continue on a bullish momentum.

On the flip side, a drop below this level would result in declining prices for the asset.

Based on its historical trend, ADA price has a 52-week high of $0.6342. This currently forms the biggest resistance to the longer-term rally for the coin at the moment.

The XLM price chart over the past year presents a very interesting outlook. Starting out January 2024 at an average price of $0.13. The coin maintained this range until it broke out in November, when it jumped to $0.6 in 3 weeks.

If a similar breakout is recorded this year, market analysts believe XLM could soon hit $1.8 if the current sentiments continue. According to earlier reports, recent developments in the Stellar ecosystem have created more buying interest in XLM.

Stellar and the Ecosystem Trend

Stellar is one of the most recognized payment protocols in the blockchain ecosystem. With its speed and low cost, it has presented itself as a unique option for merchants globally.

Its value proposition helps create a high demand for XLM, but it has made a crucial pivot for more. The Stellar protocol launched the Soroban smart contract innovation as it sought to expand into the Decentralized Finance (DeFi) ecosystem.

Analysts considered this move a strategic one. Notably, they believed that with the industry’s evolution, this pivot is essential for long-term growth.

Per data from DeFiLlama, the Stellar Decentralized Finance ecosystem currently boasts a Total Value Locked (TVL) of $62.96 million. This is proof that the smart contract pivot is drawing in new capital.

Ultimately, this can help sustain the XLM price momentum in the coming months