Date: Sun, March 02, 2025 | 04:54 AM GMT
As the new month begins, major altcoins are showing signs of recovery after a sharp correction that started following the November rally. The heavy sell-off in February significantly impacted prices, but now, the market appears to be stabilizing.
Among the top-performing altcoins, Stellar (XLM) has gained over 8% today, narrowing its monthly decline to 21% after bouncing off a critical support level.
Bounce Off Key Support
XLM’s daily chart shows the formation of a bull flag pattern, which developed after a sharp rejection from its November 24 high of $0.63 following a 600% rally. The correction that followed pushed XLM down to retest support at the lower trendline of the bull flag multiple times.
In its latest drop, XLM successfully bounced off the flag’s support trendline and the 200-day moving average (MA), driving its price up to the current level of $0.32.
From here, if bulls manage to push XLM above the 125-day MA resistance, it could pave the way for a retest of the bull flag’s upper resistance trendline. A potential breakout from this pattern could mark the end of the correction phase and signal the start of a new uptrend.
Historical Pattern Hints at a Big Rally
Crypto analyst @CyphrGM recently highlighted that XLM is mirroring its price action from late 2020, just before it surged in the bull run of 2021.
A similar bounce from a correction phase in December 2020 led to a massive rally, and if XLM follows the same pattern this time, the analyst predicts a target range of $2.50 to $2.60 for this cycle.
With technical indicators aligning with this historical pattern, XLM could be gearing up for a major bullish breakout in the coming weeks.
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