Stellar price is down 7% today amid current market volatility and is now trading at $0.43. Considering that XLM usually mirrors the path of XRP and that XRP is down 6% today, this decline is not surprising.
Popular cryptocurrency analyst BLOCK BULL recently shared an interesting Stellar chart with his 11,000 followers on X, sparking huge interest in the cryptocurrency community.
XLM price analysis
The chart reveals a clear symmetrical triangle pattern, with the price currently hovering around $0.43. This formation shows converging trend lines, where the upper resistance line connects a series of lower highs, while the lower support line connects higher lows. The pattern indicates that XLM is going through a consolidation period, with major resistance near $0.45 and support holding around $0.42.
What makes this setup particularly interesting is the timing. The apex of the triangle converges around January 29, 2025, coinciding with the next Federal Reserve meeting. This timing could be important, as Fed decisions often lead to big moves in the cryptocurrency market.
/html$XLM MEGA FUCKING SEEMS ON DAILY.
Summit January 29 = Fed meeting 🚀🚀 pic.twitter.com/GlqehK1QR5
– 📈BlockBull📈 (@TheBlockBull) January 21, 2025
The chart also highlights a notable resistance level at $0.63345, which could serve as a potential target in the event of an upward breakout. However, traders should note that the pattern itself does not guarantee a trend – while BLOCK BULL appears confident of an upward move, the price could break out in either direction.
Consolidation within this triangle pattern indicates low volatility, but this calm period often precedes a significant price movement. If XLM breaks above the $0.45 resistance level, it may target higher levels around $0.50 and then $0.80-$1. Conversely, a drop below $0.42 could lead to further declines, with potential support levels at $0.35.
Looking at historical patterns, XLM’s correlation with XRP’s movements adds another layer to this technical setup. The last time Stellar formed a similar triangle pattern following XRP’s price action was during the uptrend of 2021 and 2024, although past performance does not guarantee future results. If XRP can recover from its current 6% decline and break higher from its consolidation pattern, this could provide additional momentum for a potential breakout of XLM, given its historically correlated price movements.
Read also: Whales invest $165 million in XRP and these two undervalued altcoins
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