The price of Stellar (XLM) had dropped 89% since its peak value of 1.655 XRP back in January 2021, however, a rebound has occurred in March with the XLM/XRP pair rising to its intraday high of 0.20 XRP on March 31. Trading volumes for this pair have been increasing, potentially paving the way for a further run-up towards 0.22 XRP and potentially higher in April.

The rebound and current outlook is largely associated with a technical pattern known as a cup-and-handle. The pattern typically forms when the price undergoes a U-shaped recovery, or cup, followed by a consolidation period, or handle, all under a common resistance level which is known as the neckline. The breakout stage is when the price breaks above the neckline and rises by as much as the distance between the cup's bottom and the neckline.

In the case of XLM, we are now 20% away from the breakout target of $0.131 although the daily relative strength index (RSI) has entered its overbought zone above 70. This suggests that some consolidation or even a correction back to the neckline around $0.095 could happen in the first week of April. However, traders analyzing this cup-and-handle pattern will be paying close attention to the combination of any bounce from the neckline and an increase in trading volumes as an indicator of the strength of the breakout.

At the same time, the XLM/USD price rebound has been coinciding with the U.S. Securities and Exchange Commission's (SEC) case against Ripple coming to a conclusion. This is likely to end up being a win for Ripple according to legal experts, although this case has had a profound effect on both Stellar's price as well as its perception in the wider crypto market in recent months.

In conclusion, the potential for a continuing bullish outlook for Stellar appears to be slowly gaining strength. A bounce from the neckline with increased trading volume could see XLM/USD prices surge to new yearly highs, potentially creating a strong short-term rewards opportunity for traders.



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