Stellar’s XLM is poised for a bullish breakout this month, with technical indicators turning green.
Altcoin formed a classic bull flag pattern on daily charts. This is a trend ahead of the expanded upward movement. If the setup is kept, the XLM may be on track to move towards the $0.67 mark.
XLM prepares for the next push
Bull flag patterns form after a strong price gathering when assets enter a short consolidation period, during which time trades within horizontal channels.
This phase is similar to the “flag” on the chart, suggesting that buyers are taking a break before they raise prices again. This pattern is considered a bullish continuation. This means that once the integration is finished and a breakout occurs, it can lead to another upward leg.
XLM’s recent price actions follow this structure. Between July 8th and July 14th, Altcoin surged 84%, marking a strong upward movement (forming the flagpole). Since then, XLM has entered the integration phase and traded within horizontal channels of the daily chart.
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This formation suggests that the Bulls are not retreating, but rather reorganizing. The integration reflects healthy cooldowns after the rise, allowing the market to reconstruct bullish sentiment.
Furthermore, XLM’s liquidation heat map shows a large concentration of liquidity in the $0.42 price range. This cluster is above XLM’s current trading range, further strengthening the case of potential upward movement.
Traders use liquidity heatmap to visualize where many stop losses, take profits and liquidation levels are located. These clusters act as price magnets, especially in highly utilized markets.
For XLM, the visible cluster is close to $0.42, hinting at a potential move towards that price. This could spark momentum and serve as the first step towards a wider price surge.
Can XLM hold lines?
In general, when the bull flag pattern is formed, it indicates that the asset is likely to continue its previous uptrend after a short period of integration. The expected movement after a breakout is often equal to the height of the first meeting (“flag pole”).
If this technical setup works, the XLM will be able to match the measured target and get back on track for the rally towards $0.67.
However, if the price cannot keep a break under the horizontal integration channel, disable the bullish pattern. In that scenario, the downside pressure could rise and drag XLM below the $0.38 level.
Why August is Bigger for XLM: Two factors to watch first appeared on Beincrypto.
