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Stellar (XLM) Bounces Off Key Support: Historical Pattern Hints at a Big Rally

Stellar (XLM) Bounces Off Key Support: Historical Pattern Hints at a Big Rally

CoinsProbeCoinsProbe2025/03/02 07:22
By:Nilesh Hembade

Date: Sun, March 02, 2025 | 04:54 AM GMT

As the new month begins, major altcoins are showing signs of recovery after a sharp correction that started following the November rally. The heavy sell-off in February significantly impacted prices, but now, the market appears to be stabilizing.

Among the top-performing altcoins, Stellar (XLM) has gained over 8% today, narrowing its monthly decline to 21% after bouncing off a critical support level.

Stellar (XLM) Bounces Off Key Support: Historical Pattern Hints at a Big Rally image 0 Source: Coinmarketcap

Bounce Off Key Support

XLM’s daily chart shows the formation of a bull flag pattern, which developed after a sharp rejection from its November 24 high of $0.63 following a 600% rally. The correction that followed pushed XLM down to retest support at the lower trendline of the bull flag multiple times.

Stellar (XLM) Daily Chart/Coinsprobe (Source: Tradingview)

In its latest drop, XLM successfully bounced off the flag’s support trendline and the 200-day moving average (MA), driving its price up to the current level of $0.32.

From here, if bulls manage to push XLM above the 125-day MA resistance, it could pave the way for a retest of the bull flag’s upper resistance trendline. A potential breakout from this pattern could mark the end of the correction phase and signal the start of a new uptrend.

Historical Pattern Hints at a Big Rally

Crypto analyst @CyphrGM recently highlighted that XLM is mirroring its price action from late 2020, just before it surged in the bull run of 2021.

Stellar (XLM) Daily Chart/Source: @CyphrGM (X)

A similar bounce from a correction phase in December 2020 led to a massive rally, and if XLM follows the same pattern this time, the analyst predicts a target range of $2.50 to $2.60 for this cycle.

With technical indicators aligning with this historical pattern, XLM could be gearing up for a major bullish breakout in the coming weeks.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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