Stellar Poised for Potential Breakout as Price Holds at Key Support
Stellar (XLM) is at a critical juncture, with its price hovering around $0.32. This level aligns with the golden pocket Fibonacci zone and the value area low, creating a strong support zone.
A falling wedge pattern is also forming, which historically signals a bullish breakout. If this wedge breaks out with increased volume, Stellar could surge toward $0.50, a major resistance level.
Several factors support this bullish outlook. The golden pocket at $0.32 has historically been a reversal point for major assets.Additionally, Ondo Finance has launched USDY, a yield-bearing stablecoin on the Stellar network, adding to its appeal.
Key technical points include:
- Golden Pocket Support: Price is testing the 0.618 Fibonacci level, coinciding with $0.32.
- Value Area Low Confluence: This zone strengthens as a potential reversal point.
- Bullish Wedge Formation: An 8-point falling wedge is nearing its apex, with volume likely to drive the breakout.
While the setup is bullish, confirmation depends on volume. A breakout with increasing demand would validate the wedge and push Stellar toward $0.50. Without sufficient volume, Stellar may face extended consolidation or false breakouts.
Visa has also expanded its stablecoin settlement platform, including Europe’s USDG, which could influence Stellar’s trajectory.
If Stellar holds $0.32 and breaks out with volume, a rally toward $0.50 is likely. However, failing to hold this level could lead to further downside.
