- XLM price develops an inverse head and shoulders pattern on the 12H chart which indicates a bullish reversal.
- A neckline breakout above $0.50 would push XLM to the $1 level in line with the 1.786 Fibonacci extension.
- Strong support is at $0.33-$0.36 which supports bullish structure and potential of rise.
XLM price is in the process of developing strong bullish momentum as it is trading in a textbook inverse head and shoulders configuration on the 12-hour chart. As the price nears a major neckline resistance and the right shoulder is now in place, there is a potential breakout that may occur. With the help of Fibonacci levels and an obvious reversal pattern, XLM might be about to experience the burst of momentum toward the $1 mark in the next several weeks.
XLM Price Technical Analysis: Inverse Head and Shoulders Hints at $1 Target
XLM price is also showing the signs of a possible bullish breakout, with it filling the right shoulder of a well-established inverted head and shoulders pattern- one of the traditional reversal patterns. This structure would potentially take XLM to the $1 level, as analyst Ali Charts notes, marking a significant shift in the direction of the trend after several months of sideways trading.
In the 12 hour chart, the left shoulder was in February, the head in April and now the right shoulder is starting to shape itself as XLM trades at around $0.37886. The pattern neckline coincides with the $0.46-$0.50 zone that also matches significant Fibonacci retracement levels.
A break over the $0.786 Fib level ($0.4165) and neckline resistance at $0.4947 would likely result in a move toward the 1.0 Fibonacci extension at $0.58 with the following targets of $0.63 (1.272 Fib), $0.70 (1.414 Fib) and $0.83 (1.618 Fib). The last extension at $0.95 (1.786 Fib) is near the 1 target by Ali, which is a potential 150 percent increase above the current levels.
A solid base is formed in the range of $0.33-$0.36 with good support in the 0.618 Fib retracement which gives a good basis to any bullish continuation.
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