XLM Forms Triple Bottom and Eyes $0.4535 If $0.2986 Breaks

Stellar Lumens builds a triple bottom pattern with three lows near $0.2354 and a neckline at $0.2986.

The chart shows Fibonacci targets between $0.3498 and $0.4535 if price breaks above the neckline soon.

Traders are closely watching $0.2986 for a clean breakout with volume that may trigger strong upside movement.

Stellar Lumens (XLM) has formed a possible triple-bottom reversal on the 4-hour chart and may target $0.4535. The pattern shows early signs of strength with XLM trading around $0.2734 as of May 3, 2025. A projected breakout could follow a near-term retest of support, according to analysis shared by Michael EWP.

Source; X

The chart suggests a bullish setup based on three rounded lows forming near $0.2354, creating the triple-bottom structure. Price has recently completed an impulse wave with a corrective pullback underway. If the pattern completes and breaks above $0.2986, a move toward Fibonacci levels and a final target of $0.4535 may be expected.

The setup includes key Fibonacci extension zones at $0.3498 (2.618), $0.4098 (3.618), and $0.4519 (4.236). These levels often act as roadmaps for traders to determine potential rally zones. The horizontal resistance level at $0.2986 acts as a neckline, marking a critical breakout point.

Reversal Pattern Signals Market Shift

The triple-bottom pattern has historically indicated a strong reversal in downtrending markets. This formation reflects growing demand each time price retests a support level. In XLM’s case, the three rounded lows reflect buyers returning near $0.2354 after repeated dips.

Volume has been steady, and price action shows a staircase recovery from each low. The combination of higher lows and a forming neckline suggests a potential shift in trend. If XLM confirms a breakout above $0.2986, it could invite fresh bullish momentum.

This reversal pattern is widely used in technical trading for its reliability across timeframes. The 4-hour chart adds weight to the signal as short-term traders look for actionable patterns. Fibonacci projections serve to guide expectations and outline potential profit-taking zones.

Fibonacci Levels Highlight Rally Potential

The Fibonacci extensions offer clear technical goals if momentum continues. Traders use these ratios to measure how far a trend may extend beyond its recent movement. XLM’s chart highlights three key Fibonacci levels between $0.3498 and $0.4519.

The final target shown on the chart is $0.4535, slightly above the 4.236 Fibonacci level. That area aligns with previous structure seen on higher timeframes. If reached, it would mark a nearly 65% rise from current price.

The $0.2986 level must first be broken with confirmation to validate the projection. Until then, XLM may revisit support near $0.25 or lower in a corrective wave. A clean break followed by rising volume would increase confidence in the breakout.

Will XLM Break $0.2986 and Start a Major Rally?

Can Stellar Lumens sustain its bullish structure long enough to trigger a breakout or will it remain in consolidation?

The chart structure suggests potential but requires confirmation. Many traders will wait for a firm close above the neckline before acting. A false breakout could lead to more downside or sideways movement before strength returns.

The Relative Strength Index (RSI) currently hovers near overbought on the 4-hour timeframe. That could signal the need for short-term relief before a larger move begins. Volume confirmation will also play a key role in validating any upward momentum.

Analysts tracking this setup are closely watching whether the asset breaks through $0.2986 with strength. Should that occur, the levels marked by Fibonacci extensions could serve as future targets during a potential rally.