Stellar is the only top 20 digital asset in the cryptocurrency market to show double-digit profits. It looks like after breaking out of a long-term downtrend, the altcoin is ready for a huge leap forward.
This is due to the launch on the Stellar blockchain by the oldest German bank Bankhaus von der Heydt of a stablecoin backed by the euro. According to the CEO of the bank, the choice of blockchain was dictated by the simplicity of issuing assets and managing them on the network.
At first, attempts to change the price movement to an upward one were in vain and met with resistance from bears. Stellar's upside has been limited by the downtrend line. However, another downtrend line controlled the bearish price movement, giving the token a semblance of stability.
Trendlines have formed a falling wedge pattern, which is a significant bullish indicator in technical analysis. Typically, a break above the wedge hints at a strong upward price rally. As for Stellar, a chart breakout is likely to send it up 45% to $0.2345.
Over the past 24 hours, the rally has been 18%, however, to confirm the uptrend, XLM must close the day above 50 simple moving averages.
Stellar was hovering today at $0.173 with a resistance zone at the 100 SMA ($0.18). A price move above this area will serve as a powerful bullish signal. If demand for XLM rises, sufficient buying volume can be created for a ballistic price movement targeting $0.2345 (new year high).
It's worth noting that the bullish outlook will be questionable if XLM fails to close the day above the 50 SMA. Sell orders are likely to rise below this level, causing XLM / USD gains to subside.