Stellar token XLM targets $0.43 after crucial breakout

The central theses

• Stellar sieht nach dem Ausbruch aus einem Konsolidierungsmuster auf höhere Hochs vorbereitet aus.
• Bei weiterem Kaufdruck könnte XLM um fast 20 % steigen und 0,434 USD anvisieren.
• Die Preise müssen über dem Unterstützungsniveau von 0,357 USD bleiben, damit sich der bullische Ausblick durchsetzt.

XLM appears to be breaking out after breaking a critical resistance barrier. As volatility increases, investors need to be aware of the possibility of a fakeout.

XLM is preparing for high volatility

Institutional interest appears to be returning to the cryptocurrency market after a few weeks of low volatility, and XLM is one of the tokens that could benefit.

A recent oneTest reportfrom Arcane Research shows that open interest associated with asset managers' long positions has reached a new all-time high of $165.7 million. Such market behavior suggests that large investors strongly believe that the asset will continue to rise.

As most digital assets are trending higher, Stellar’s ​​XLM token appears poised to continue its upward trend. The cross-border remittance token recently broke out of a descending triangle that has contained its price action since August 13th.

After XLM retests the triangle breakout point, an increase in buying pressure around the current price level could send it up nearly 20% towards $0.434. The crossing of the 50% Fibonacci retracement level at $0.367 could serve as another confirmation factor for the bullish outlook.

It is important to pay close attention to the 38.2% Fibonacci retracement level at $0.357. With volatility increasing, market makers could set up a bull trap to liquidate unwitting investors.

A decisive 4-hour candlestick close below this support level could halt the bullish thesis and lead to a pullback to the 23.6% Fibonacci retracement level or the x-axis of the triangle. These support levels are at $0.345 and $0.329, respectively.