Stellar XLM rises 3.6%, breaking through key resistance amid bullish signals

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Stellar XLM soared 3.62% to $0.3004 on Tuesday, breaking through a key resistance level on volume nearly 19% above its 30-day average. This move outperformed the broader crypto market by 4.86% and moved XLM closer to the 5% relative strength threshold that often marks the start of a major breakout trend.

Trading activity increased during European hours, with trading volume reaching 68.52 million shares, 78% above the 24-hour moving average. XLM consolidated its gains between $0.3020 and $0.3100 and established solid support near $0.3058, confirming a clean break above the $0.3020 resistance level due to strong inflows.

Analysts will be watching closely to see if XLM approaches the upper bound of its 7-year symmetrical triangle pattern. Chartered Market Technologist Axel Kivar notes that the price compression since 2018 has created a setup with significant breakout potential, predicting a possible move towards $1.52, which would represent a 446% increase from the current price if the token emerges from a multi-year consolidation.

For traders, the focus now shifts to whether XLM can sustain momentum above resistance and confirm a long-term breakout. A surge in institutional participation at the $0.3020 level and consistent buying on the return suggests strength in demand. Combined with the token clearly outperforming the market, these factors suggest that XLM may be on the verge of a sustained bull phase.

Key technology levels indicate momentum changes for XLM

Support/Resistance: After multiple successful tests, primary support was established at $0.3058. Resistance formed at the session high $0.3118 and consolidated between $0.3020 and $0.3100.

Volume analysis: Peak activity of 68.52 million shares (78% above the 24-hour SMA) occurred at 09:00, validating the breakout of the $0.3020 resistance level

Chart pattern: A double-wave rally pattern emerged, showing an uptrend with lows of $0.2790, $0.2845, and $0.2915 for a total range of 11.6%.

Goals and risks/rewards: Near-term resistance zone is $0.3045-$0.3050 and long-term triangle breakout target is $1.52, with 446% upside potential if the 7-year pattern resolves higher.

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