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- Stellar Lumens ($XLM) breaks out of a descending resistance line, signaling potential bullish momentum.
- Key insights include full retracement support, volume surge, and resistance flip.
- Short-Term Bullish: Returning above the double bottom pattern suggests a positive outlook for $XLM.
Stellar Lumens ($XLM) has recently broken out of a descending resistance line, signaling a potential bullish trend. On November 4, Stellar Lumens completed a significant token burn, destroying 55 billion $XLM tokens.
The Stellar Development Foundation implemented this burn to enhance efficiency within the Stellar ecosystem. Following the announcement, $XLM surged by 25%, igniting bullish sentiment among investors.
Technical Analysis: Key Insights
The weekly chart reveals that $XLM retraced fully from its December 2017 high of $1.10 to the May 2017 high at $0.05. Remarkably, the current level has held as support, acting as a springboard for $XLM’s upward movements.
Although the price of $XLM is in a 23-month downtrend since its 2017 peak, some analysts predict an upsurge in the coming days. For instance, Javon Marks believes that only time seems to be in the way of a price rally to $0.681.
As $XLM (Stellar) continues to hold broken out and free of the displayed resisting trend, only time is looking to be in the way of a prices point of $0.681!
— JAVON⚡️MARKS (@JavonTM1) July 12, 2024
With this breakout, an over 603% uphill run to reach this target can be coming and all of this post-breakout action could… https://t.co/y5Hc6HSgcC pic.twitter.com/r7RdV3GdTZ
Volume Surge and Resistance Flip
$XLM surged and printed an all-time high volume candle on Bitfinex. The price broke through the crucial resistance at $0.07 and pushed further toward the range high at $0.09.
For sustainable upward momentum, a retest near $0.073 is necessary to confirm the support/resistance flip. If $XLM rallies toward $0.13, it will breach the weekly downtrend for the first time in 23 months.
Notably, the same price action occurred on the $XLM/BTC pair. During the 2017 crypto mania, high-volume spikes took place, but $XLM consistently retraced to levels below 800 satoshis (sats). Now, with the recent bullish momentum, $XLM could trigger a rally, potentially reaching $0.13 and beyond.
Returning above the double bottom pattern is a positive sign for $XLM in the short term. As the token burn and technical indicators align, investors eagerly await further price movements. Keep an eye on $XLM’s performance—it might just be the beginning of a new bullish cycle.