Stellar (XLM) Surge Anticipated: 30% Increase on the Horizon – Can It Follow Last Cycle’s Pattern?

With the conclusion of a five-month decline, analysts indicate that Stellar (XLM) may be poised to follow a similar pattern as seen in previous cycles. The cryptocurrency has encountered a significant breakdown from a bullish reversal formation and is now targeting new price milestones.

Stellar Aims for $0.39

In the midst of a market upswing, Stellar has successfully exited a crucial demand area and revisited the $0.30 level for the first time since March. This follows a persistent downtrend that began after reaching a three-year peak of $0.63 in November 2024.

During its retracements this year, XLM saw a significant drop of 68%, hitting a five-month low of $0.20. Nonetheless, the market recovery in late April allowed the cryptocurrency to break above its downtrend, confirming this breakout with a weekly close exceeding $0.28.

On Friday, Stellar reclaimed the $0.29 resistance and retested the $0.30 level for the first time in almost two months. Following this performance, an analyst highlighted that the asset is emerging from a two-month inverse head and shoulders pattern.

This configuration represents a bullish reversal indication, hinting at a possible transition from a downtrend to an uptrend. Earlier in the week, the analyst mentioned that the right shoulder of the pattern was forming and identified the neckline around the $0.29 mark.

The analyst suggested that breaking out from this formation could lead to a potential 30% rally towards the $0.39 resistance, which was lost during retracements in February.

Could XLM Reflect Past Trends?

Analyst Rekt Capital pointed out that the cryptocurrency has confirmed the conclusion of its prolonged downtrend and executed a breakout from its downward channel.

According to the analyst, if XLM manages to close weekly above a critical zone between $0.27 and $0.29, any pullbacks into this area would represent a successful reclaim as support, which could facilitate a move to higher price points.

The analyst emphasized that regaining the $0.27-$0.29 range is vital, as it represents a historically significant demand area on the monthly scale. In previous bullish markets, securing this zone as support has enabled Stellar to surge towards the $0.37-$0.40 range.

In 2021, the cryptocurrency surged to its cycle peak of $0.80 after re-establishing support in this crucial demand zone and overcoming the $0.37 barrier. Similarly, it reached an all-time high (ATH) of $0.87 following a breakout from this area.

Should XLM adhere to historical behavior and climb towards the next resistance, it must confirm and hold that level to maintain its historical patterns. “Thus, a successful reclaim could allow XLM to explore the $0.52 highs over time,” Rekt Capital concluded.

Meanwhile, analyst CW mentioned that after breaking through the upper line of the downtrend channel, Stellar will face resistance at two significant selling walls: one between the $0.34 and $0.38 levels, and a larger one around the $0.47 to $0.70 zone.

Currently, Stellar is trading at $0.296, reflecting a 2% increase over the daily period.