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Stellar (XLM) is completing a retest phase to ease a bullish revival during a broader market pullback. The intraday jump and lower price rejections tease a flag breakout for a 40% hike.
With a market cap of almost $3 Billion, Stellar, a key rival to XRP, shows a recovering price trend amid market pullback. Putting an end to a massive correction spree over the past few months, the Bulls are back for Stellar for a second coming in 2024.
Despite trading at discounted levels compared to its 52W high or the all-time high, the XLM trend reversal is turning the eyes of smart investors in the market. Will the Stellar token revival result in a massive surge to outperform Ripple this year?
Stellar’s Channel Breakout Forms Another Bullish Pattern
After the annual peak formation at $0.15, Stellar quickly lost its dominance at key levels, resulting in a downtrend. Pushing $XLM down to $0.083, the price action formed a falling channel over the months.
As the bulls regain consciousness, the $XLM price surpasses the overhead trendline for a breakout run. Coupled with the Fibonacci retracement over the correction phase, the recovery run hits the 50% Fib level at $0.115, a 35% jump, before a pullback.
The ongoing pullback tests the 23.60% Fib level at $0.097 while buyers remain dominant at the $0.10 psychological mark. Furthermore, the breakout run, in addition to the ongoing pullback, forms a bullish flag pattern.
With an intraday gain of 1.11%, the market anticipates a reversal rally to prolong the uptrend movement. Hence, the short-term resistance trendline breakout will provide a buying opportunity for sideline traders.
Starting with the technical indicators, the RSI line shows an uptick from the halfway line, reflecting a boost in buying pressure. Supporting the bullish viewpoint, the positive crossover in the Stochastic RSI lines in the oversold zone teases an uptrend continuation.
With Bulls Returning to Stellar, Will $XLM Hit $0.15?
Forming a bullish flag pattern upon a channel break suggests a high likelihood of an uptrend continuation for Stellar. Further, the intraday growth supports the revival after the 23.60% Fib level retest.
Hence, Stellar is likely headed to a new 52W high this year as the broader market recovers. According to the Fibonacci levels, the bull run for $XLM could challenge the 78.60% and 100% Fib levels at $0.1377 and $0.1576. Further, in the altcoin season, the 1.618 Fib level at $0.23 could be within Stellar’s grasp.