XLM Bullish Chart: Analyst Sees Stellar Opportunity

Peter Brandt and other analysts are eyeing Stellar (XLM) with bullish sentiment. Is XLM poised for a breakout?

XLM Bullish Chart: Analyst Sees Stellar Opportunity

Stellar (XLM) is quietly making waves in the crypto market, catching the eye of veteran trader Peter Brandt. The question on everyone's mind: Is XLM ready for a major breakout? Let's dive into what the analysts are saying.

Brandt's Bullish XLM Chart Analysis

Peter Brandt recently highlighted XLM's chart as potentially the most bullish in the crypto space. He pointed to a massive inverse head and shoulders pattern forming over several years. This pattern, a reliable bottom formation in technical analysis, suggests a potential for significant upward movement.

Brandt emphasizes two crucial conditions for this bullish scenario to play out: XLM must hold above its April low, and it needs to decisively close above $1. Until then, it remains range-bound.

"Potentially the most bullish chart of all belongs to $XLM," Brandt tweeted, underscoring the importance of the $1 mark.

Why the XLM Chart Looks So Strong

The inverse head and shoulders pattern, stretching back to 2018, reflects years of accumulation. The neckline of this formation sits just below $1, a level that has acted as resistance in the past. XLM is making higher monthly closes and has reclaimed its major moving averages, signaling a shift in the long-term trend.

Another key factor is the breakout above a multi-year range between $0.08 and $0.20. The April 2025 low around $0.22 now serves as a critical support level.

What Happens After $1?

A confirmed close above $1 could be a game-changer. This level has been a ceiling since 2018. Once broken, it could become a new support level, potentially triggering a much larger rally. Technical targets based on the height of the inverse head and shoulders pattern estimate a move towards $1.70 or even $2.00.

Analyst Solberg Invest's Perspective

Adding to the bullish sentiment, Solberg Invest notes that XLM has jumped over 80%, breaking a long-standing downtrend. With $0.43 now acting as strong support, Solberg predicts the next target is $0.60.

"$XLM soaring! Up +80%, $0.43 now support, next target $0.6 with new highs ahead," Solberg tweeted.

Open Interest Surge Supports Bullish Outlook

Data from Coinalyze shows a surge in open interest, further supporting XLM's recent price surge. The total value of perpetual contracts for XLM now stands at $270.9 million, reflecting increased capital entering XLM futures trades. Positive funding rates on most exchanges indicate a clear bias toward long positions.

My Take: XLM's Potential

While it's important to approach crypto with caution, the confluence of technical patterns, analyst endorsements, and rising open interest paints a compelling picture for XLM. If it can break and hold above $1, we could see some serious fireworks. Of course, remember to do your own research and never invest more than you can afford to lose. But keep an eye on XLM – it might just surprise us.

The Bottom Line

So, is XLM the crypto darling we've been waiting for? Maybe! With analysts buzzing and charts looking primed, it's definitely one to watch. Just remember, in the wild world of crypto, anything can happen. So buckle up, do your homework, and maybe, just maybe, we'll all be sipping celebratory cocktails on the moon, courtesy of XLM!