Potential Reasons for XLM's Possible Price Doubling:
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Stellar (XLM), the seventh-largest cryptocurrency by market capitalisation, is showing strong signs of a potential 100% rally, according to several technical and fundamental indicators.
A key indicator to watch is the breakout above the $0.50 resistance level, a crucial threshold that, if cleared with strong volume, could confirm a bullish trend. This breakout aligns with multiple bullish patterns, such as the inverse head and shoulders formation, the falling wedge breakout pattern, bullish pennant, and bullish engulfing candles.
The surge in trading volume and Total Value Locked (TVL) to $152 million also signals growing network adoption and fundamental strength supporting price increases. An 80% surge in TVL and spikes in trading volume are positive momentum clues.
Moreover, Stellar's price must first break above its previous high of $0.52, or the top of the "wick", to form a clear uptrend. The "wick", measured from a low of $0.23 to a high of $0.52, positions Stellar's next price target around $0.97, provided the uptrend continues.
Historically, the last time an EMA triple crossover pattern occurred, the price of Stellar jumped from $0.23 to over $0.52. The 50-day EMA is approaching a crossover above the 100-day EMA on the 4-hour chart, further strengthening the bullish argument.
The Bull-Bear Power index has returned to positive territory, confirming the return of buying power. Additionally, the weekly net flow chart on spot markets shows an increase of over 1,159% in inflows this week, indicating a growing interest in Stellar.
The "mast and flag" pattern on the daily chart has been broken, another bullish sign. However, traders must remain vigilant for the risk of pullbacks caused by profit-taking in the coming sessions. Caution is advised due to the risks of profit-taking that could temporarily slow the momentum.
It's important to note that even after a potential breakout above $0.50, XLM faces supply pressure near $0.60-$0.77 levels that must be overcome for a sustained rally. Furthermore, overall market conditions and sentiment could potentially suppress Stellar’s price action irrespective of internal strength.
In summary, a confirmed breakout above key resistance ($0.50) with strong volume and fundamental adoption growth (TVL) aligned with bullish chart patterns constitutes leading indicators for a potential 100% rally. Traders should closely monitor these technical and fundamental levels to gauge rally sustainability.
For those interested in buying Stellar (XLM) on Bitget, follow these steps: create an account, deposit funds, access the spot market, and place an order.
References: [1] [2] [3] [4] [5] (Multiple sources supporting the technical and fundamental analysis)
- The surge in interest in Stellar (XLM) is not limited to its price action, as the weekly net flow chart on spot markets shows an increase of over 1,159% in inflows this week, indicating a growing interest in learning more about this cryptocurrency at a crypto academy, particularly in the realms of finance and technology.
- As Stellar (XLM) potentially rallies by 100% if key resistance is broken, investors may consider this opportunity as a long-term strategy in their investing portfolios, understanding that major technological advancements in the finance sector could further bolster Stellar's value.
