The XLM price lost around 25% in February which is pretty much in line with Bitcoin, Ethereum and XRP plunges.

However, Stellar’s token has been recovering well today with 10% pump and is now trading around $0.30. Crypto veteran and analyst Ali Martinez took the time this weekend to update his outlook on XLM price.

Martinez’s chart analysis reveals that XLM/USDT is currently forming what appears to be a bullish flag pattern. The price peaked around November 2024 and has been correcting downward inside a descending channel. Recent price action shows XLM bouncing off the lower trendline of this pattern, potentially signaling the end of the correction phase.

The Stellar price is currently hovering around the crucial 0.618 Fibonacci retracement level at $0.30507, which is acting as a key support zone. If XLM successfully holds this support and breaks above the upper trendline, it could confirm a bullish breakout scenario with significant upside potential.

#Stellar $XLM is forming a bullish flag, which could trigger a 330% breakout! pic.twitter.com/hWuQSTkUj0

The most exciting aspect of Martinez’s analysis is the projected price movement following a potential breakout. His chart indicates an aggressive breakout scenario that could lead to gains exceeding 300%.

Martinez has marked the 1.618 Fibonacci extension level at $2.14433, suggesting this as a potential long-term price target if the breakout momentum remains strong. For this scenario to play out, the XLM price would need to clear several resistance levels, including $0.41806 (0.786 Fibonacci level) and $0.63661 (1.0 Fibonacci level).

The bullish flag pattern visible in the chart typically requires high volume confirmation for a reliable breakout. While the recent bounce suggests buyers are stepping in, traders should watch for increasing volume as a confirmation signal.

If XLM breaks above the upper trendline of the pattern and clears these key resistance levels with strong volume, it could confirm a bullish continuation potentially leading to the parabolic rally Martinez has projected. Of course, XLM price will depend a lot on how Bitcoin performs in March and beyond.

However, investors should remain cautious of potential fake breakouts, insufficient volume confirmation, and broader market conditions that could impact XLM’s price action regardless of the technical setup. Of course, XLM price will depend a lot on how Bitcoin performs in March and beyond.

Read also: Missed PI Coin Rally In February? Don’t Worry, These Low-Cap Altcoins Can Save You in March

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The post Crypto Veteran Explains How Stellar (XLM) Price Can Rally 330% appeared first on CaptainAltcoin.

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