Stellar (XLM) Price Analysis: Cup and Handle Pattern Signals Potential $0.63 Breakout Ahead

Stellar's chart just flashed a classic bullish signal that could send traders scrambling.

The Pattern That's Turning Heads

XLM's weekly chart reveals a textbook cup and handle formation completing after months of consolidation. This technical setup typically precedes significant upward moves when volume confirms the breakout.

Key Levels to Watch

The $0.63 resistance level represents the pattern's neckline—a breach here could trigger algorithmic buying and FOMO-driven momentum. Support holds firm around current levels, creating a springboard for the next leg up.

Market Mechanics at Play

Unlike traditional finance where patterns sometimes feel like horoscopes for suits, crypto technical analysis actually moves markets. Retail traders pile in while institutional algorithms execute based on these exact signals.

Breaking $0.63 wouldn't just be another milestone—it would confirm Stellar's readiness to challenge higher timeframe resistances. The handle portion's shallow retracement suggests weak selling pressure, setting the stage for a clean breakout.

Timing the move remains tricky, but the setup looks primed. Because nothing says 'sound investment strategy' like drawing lines on charts and hoping hedge funds notice.

• Stellar (XLM) forms a cup and handle pattern, signaling a potential bullish continuation.
• XLM faces key resistance at $0.41, with upside targets at $0.55 and $0.6389.
• 85% of community votes remain bullish, highlighting strong investor confidence.

Stellar (XLM) is on the way to its upward momentum with an appreciation in its value, mirroring the overall market sentiment. The XLM price over the last 24 hours is up by 3.21%, but over the last week it is slightly down by 1.45%.

At the time of writing, XLM is trading at $0.3786 with a 24-hour trading volume of $212.63 million, down by 6.05% over the last 24 hours. The token has a market capitalization of $12.07 billion, which is up by 3.21%.

Source: CoinMarketCap

In general, the trend in the crypto market is turning from bearish to bullish with the BTC’s upward surge and growing investor confidence in the crypto sector. The altcoins are also benefitting from this surge, including XLM.

Stellar (XLM) Gears Up for Potential $0.63 Move

The weekly chart of stellar (XLM) is forming a classic cup and handle pattern, signaling a potential bullish continuation. The rounded base (cup) and short pullback (handle) highlight accumulation and consolidation phases. At present, XLM is trading around $0.3798, just below the key breakout zone near $0.41 immediate resistance.

Source: TradingView

If bulls manage to secure a breakout above $0.41, the next upside targets are $0.55 and $0.6389, which act as strong resistance zones. On the downside, firm support rests at $0.3369, cushioning against sharp declines. Overall, the chart leans toward a bullish outlook, but a confirmed breakout is essential for momentum.

Also Read: Stellar (XLM) Targets $0.43: Is a Break Toward Its $0.93 ATH Possible?

Stellar (XLM) Technicals Provide a Cautous Outlook

Currently, the RSI is at 54.34, reflecting neutral momentum, and the average of RSI is slightly above at 57.41, reflecting slight bullish power. Now, the price is around $0.38 and consolidates ater recent fluctuations.

Source: TradingView

MACD lines are close together, with the MACD line at 0.02659 and the signal line at 0.02843, indicating waning bullish pressure. Histogram bars are fading and are heading red, indicating that buyers are losing steam and selling pressures may prevail. Overall, the chart suggests indecision and a bearish crossover may emerge.

Stellar Community Sentiment Hints at Strong Gains

The data from CMC revealed that the community sentiment has a definitive tilt towards a bullish trend since 85% of the voters are expecting upward movement of the market. Out of a total of 171.3K votes, this represents an outright majority of optimistic opinion. Such Optimism suggests that a majority of participants are expecting growth and rising prices.

Source: CMC

On the other hand, 15% of voters are pessimistic with a bearish view of downward shifts. Although a less significant group, they reflect caution and concern about prospective declines. Their stance indicates that none of the participants are equally hopeful about the direction of the market.