Stellar (XLM), a cryptocurrency designed for payments that operates on the Stellar network, a decentralized and open blockchain, has been attracting the attention of investors and analysts, showing signs that a major rally could be on the way.
Recently, we have seen a surge in interest in several cryptocurrencies, driven by the recovery of Bitcoin and the expectation of a new bullish phase in the market. In this scenario, Stellar stands out as an asset with growth potential.
According to recent technical analysis, XLM appears to be exiting a long accumulation period, which historically precedes significant upward movements. Even though there is some difficulty in finding an ideal buy point, technical metrics indicate that a correction phase for XLM is coming to an end, with momentum gradually shifting to the side of the buyers, the so-called “bulls”.
A cryptocurrency expert known as RLinda on TradingView noted in a recent technical analysis that the XLM/USDT pair has been consistently breaking through intermediate resistance levels as it also updates its highs. According to the analyst, the token is highly poised for a bullish run towards $0.6100. As highlighted in the analysis, the main technical challenge currently is the breakout of the medium-term consolidation and overcoming the descending channel resistance, which can be seen on the four-hour chart.
“If the bulls hold the defense above the key support zone 0.46 – 0.452, we can expect growth in the medium term. Also, the rise of bitcoin and the approaching Trump inauguration can be good drivers for the crypto market,” he wrote.
According to the analyst, the coin is technically ending its correction, with the price gradually updating highs and breaking intermediate resistance levels. However, the crucial factor is the exit from this medium-term consolidation. Stellar (XLM) presents a promising scenario for the coming times. Technical analysis suggests that a bullish rally is approaching for the token.
The $0.46 and $0.452 price levels are important in this scenario, serving as a crucial base for further gains. A drop below this support could see the cryptocurrency experience a short-term pullback, while a successful breakout could potentially generate the momentum needed for medium-term growth, setting the XLM token up for a possible price breakout.
“Resistance levels: 0.486. Support levels: 0.4605, 0.4522. So, the focus is on consolidation at 0.486, 0.46. A break of the resistance will activate the rally. False break of the support and consolidation above the level will also be a good sign that the bulls are quite aggressive.”
The highest price paid for Stellar (XLM) was $0.8756, which was recorded on January 3, 2018 (approximately 7 years ago). At the time of publication, the price of Stellar was trading at $0.5113, up 10.6% in the last 24 hours. In comparison, the current price is 42.08% lower than its all-time high.
