Stellar (XLM) Eyes $3.4 Target as Elliott Wave Pattern Triggers Major Breakout

Stellar (XLM) just did something pretty exciting – it broke out of a years-long downtrend with what looks like a textbook Elliott Wave pattern. According to trader analysis, this crypto might be gearing up for a massive rally that could send it all the way to $3.4.

Elliott Wave Setup Shows Serious Upside Potential

Here's what's got traders buzzing: XLM held strong above the crucial $0.25 support level, which was make-or-break territory. Instead of crashing lower, it's now showing signs of entering Wave (3) of what could be a five-wave bullish cycle.

The immediate target? $1.20. That's where analysts expect the current wave to top out before any pullback. What makes this even more interesting is that Fibonacci extension levels are lining up perfectly with these price targets, giving the whole setup more credibility.

Wave 5 Could Send XLM to $3.4

If momentum stays strong and XLM doesn't break down between waves, the final Wave (5) could rocket the price to $3.4. The technical setup shows key Fibonacci levels at $1.26, $1.64, $2.25, and the ultimate target at $3.40.

As one trader noted: "This could be the start of a parabolic move for Stellar, but healthy pullbacks between waves are crucial for re-entry." Translation: if you're thinking about jumping in, don't chase the peaks – wait for the dips between waves to get a better entry point.