XLM Poised for a Bullish Breakout
Stellar (XLM) is gearing up for a potential 16% rally. Since early February, XLM has been forming a symmetrical triangle pattern. This pattern emerges when prices make lower highs and higher lows, creating converging trendlines.
A breakout from this pattern could trigger significant price action. Analyst Ali Martinez highlights key support at $0.321 and resistance at $0.345. If XLM breaks above the resistance, it could climb to between $0.37 and $0.38. That’s roughly a 16% jump from its current average price of $0.32. On the flip side, a dip below the support could drag the price down to $0.30 or lower.
XLM Breaks Correlation with XRP
XLM’s relationship with XRP has shifted dramatically. Last December, the two assets moved almost in sync. Back then, Stellar often reacted to XRP’s major developments, especially those tied to Ripple’s legal battle with the SEC.
Now, things are different. According to Macroaxis, the three-month correlation coefficient between XLM and XRP stands at -0.03. This is a stark contrast to their 0.97 correlation just a few months ago. The change shows that Stellar is no longer influenced by XRP’s price movements.
Market Factors to Watch
Despite its bullish setup, XLM isn’t immune to broader market influences. Upcoming U.S. economic data, including initial jobless claims and Core PCE numbers, could sway investor sentiment. These figures will be key talking points at the Federal Reserve’s FOMC meeting next month. Any surprise decisions on interest rates could impact the crypto market, including Stellar.
Political factors also come into play. Market reactions to President Donald Trump’s economic policies may affect momentum across digital assets.
Bottom Line
Stellar (XLM) looks ready to break out of its symmetrical triangle pattern. A successful breakout could see prices surge by up to 16%. While the asset has distanced itself from XRP’s influence, broader economic and political factors remain key to watch. Traders should stay alert to support and resistance levels in the coming days.
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