- XLM formed a full wave pattern above $0.451 and is now setting up the final leg toward $0.799.
- Support at $0.3846 remained strong as the third wave confirmed upward strength with solid price volume.
- The Elliott Wave chart points to a fifth wave move that could drive XLM up by over 70 percent.
Stellar (XLM) has climbed above $0.45, supported by a confirmed Elliott Wave structure that shows ongoing bullish momentum in wave (iii). The chart reveals a clear five-wave pattern on the hourly timeframe with a corrective wave (iv) expected near the $0.3846 zone. Volume profile confirms strong demand at current levels, building support for a potential move toward $0.7993 in wave (v).
The third wave has already unfolded in textbook fashion with subwaves 1 through 5 completed above the neckline breakout. Price climbed steadily after bouncing off the $0.2098 region, forming the initial wave (i) followed by a flat correction in wave (ii). Once the market reclaimed the $0.27 level, XLM entered a steep upward phase, crossing $0.3846 with momentum.
Now trading around $0.4510, XLM appears to be consolidating after wave iii of wave (iii), with an active sub-correction. The next move is projected to complete wave (v), pushing toward $0.7993, which represents the extension zone of the entire pattern. Price may retest lower supports, but the overall trend remains intact according to the current wave count.
Volume Profile and Support Levels Strengthen Case for Continuation
The volume profile on the right side shows significant accumulation around $0.3846, indicating institutional buying interest near that level. A long base was formed at this area before the upward breakout. This region now acts as both a psychological and technical support zone.
Lower support levels can be found at $0.2700 and $0.2098, which marked the base of the previous impulsive wave. These levels formed the foundation for the reversal, confirmed by strong green candles and a trendline breakout on July 6. The 200 EMA also offered dynamic support, especially during wave 2 and wave 4 pullbacks.
XLM is now trading far above its key moving averages, showing strong upside divergence. The alignment of price action with higher volume and breakout signals supports the ongoing wave count. Unless invalidated by a sharp close below $0.3846, the uptrend remains active.
Indicators Align With Impulse Count as Momentum Builds for Fifth Wave
Momentum oscillators on the chart show expected cyclical swings, with stochastic readings bouncing near midline levels. This behavior matches typical wave (iv) development, which tends to overlap with prior consolidation areas. RSI has held above the 50 mark, confirming bullish strength without overbought exhaustion.
Wave (iii) completion occurred around $0.4539, placing XLM in the corrective zone of wave (iv), often known for sideways or pullback moves. Once the correction completes, the final wave (v) may carry price toward the long-standing resistance near $0.7993. The wave count labels this as the terminal move of the third larger impulse.
All indicators and structure suggest Stellar remains in a bullish sequence, barring invalidation below previous support. With volume showing strong positioning and trendlines aligning with higher lows, traders anticipate continuation. Fibonacci levels also place the next measured resistance near $0.7993, acting as a logical wave (v) peak.