- XLM has been forming a bullish flag pattern, with a potential breakout targeting $1.80
- Technical indicators and liquidity data hinted at strong upward momentum for XLM in the short term
Stellar [XLM] has been showing promising signs of upside lately, with the altcoin probably on the verge of a breakout to $1.80 too.
In fact, technical indicators and the price action collectively seemed to be hinting at the bullishness of the altcoin’s market. Hence, the question – Will XLM manage to break through key resistance levels and hit this target?
XLM price action – What’s driving the price movement?
At the time of writing, XLM was trading at $0.3574 following a hike of 0.17% over the last 24 hours. The altcoin’s price has been consolidating within the $0.35 and $0.37 range – A sign of resilience as it held firm above key support levels.
The crypto has been facing resistance at $0.37, with other critical levels at $0.44 and $0.50. If the price holds above $0.35 and breaks through these resistance levels, XLM could potentially target $1.80.
Therefore, XLM’s price movement over the coming days will be crucial in determining whether the bullish flag formation leads to a breakout or not.
Source: TradingView
XLM social volume and dominance – How is market sentiment shaping up?
XLM’s social volume and dominance have been declining too, with the social dominance dropping to 0.28%. This may be indicative of a reduction in investor attention towards the crypto, something that could dampen short-term price movements.
However, according to historical trends, these metrics are often reactive to price changes.
As XLM pushes higher and breaks resistance levels, social volume could increase, reigniting interest from the broader crypto community. Therefore, while the press time social metrics may be low, they are likely to shift if price action supports a breakout.
Source: Santiment
Are the charts signaling a bullish push?
At press time, XLM’s RSI sat at 47.76 – A neutral reading that hinted that the coin was neither overbought nor oversold. However, a move above the 50-mark would mean that buying momentum has been building up.
Additionally, the MACD indicator crossed above the Signal line – Hinting at a bullish shift in market sentiment. These technical indicators, together, confirmed that XLM may be in a position to potentially break higher.
Source: TradingView
Liquidation heatmap – What are traders expecting?
Finally, the liquidation heatmap for XLM revealed a significant concentration of liquidations around the $0.36-level. This concentration suggested that XLM could face some resistance at this price level. However, it also implied that a breakout might trigger a wave of liquidations, pushing the price higher.
Liquidation events often lead to volatility, which could fuel the upward momentum necessary for Stellar to hit higher targets.
Source: Coinglass
