Stellar’s XLM Climbs Over 187%, Analysts Eye $1 Milestone

Stellar’s XLM surges over 80% to $0.55, as analysts predict the cryptocurrency could reach new heights amid bullish momentum.

Astronaut boy showing thumbs up in Stellar land.
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  • Stellar’s XLM has surged over 187% in the last 7 days, reaching a peak of $0.63.
  • Market optimism has grown as analysts predict XLM could hit between $3 and $5.
  • Technical indicators have suggested a possible short-term correction.

In a dramatic turn of events, Stellar’s native cryptocurrency XLM has skyrocketed, leaving investors and market watchers buzzing with excitement. The asset has climbed over 80% in just 24 hours, reaching heights not seen since early 2021. As whispers of XLM approaching the $1 mark circulate, many wonder if this is just the beginning of a much larger rally.

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But amid the euphoria, some caution that the surge might be too rapid. Technical analysts point to overbought signals, suggesting that a short-term correction could be on the horizon. So, is Stellar poised for sustained growth, or is the market due for a reality check?

XLMโ€™s Meteoric Rise and Analyst Predictions

Stellar’s price jump from $0.302 to a peak of $0.6342 reflects a strong bullish momentum fueled by robust buying interest. After breaking through key resistance levels, the cryptocurrency has delivered impressive returns for investors. Stellar’s founder, Jed McCaleb, added to the optimism by stating, “Stellar is the most underrated and least understood crypto project. 

The best and most impactful use of crypto is as digital money, and this is what Stellar is built for.” Market analysts have taken note. A prominent speculator known as “Charting Guy” predicts that XLM could achieve price targets between $3 and $5. 

He points to a multi-year “Adam and Eve” pattern forming on the monthly chart since 2017โ€”a bullish signal associated with long-term upward momentum. A potential breakout from this pattern could result in gains ranging from 930% to 1,617% from current levels. 

Additionally, Grayscale Investments LLC’s recent 10-K filing for its Stellar Lumens Trust highlighted a 10% increase in net assets, signaling growing institutional interest. The trust added 34,875,230 XLM tokens valued at $3,923, offsetting earlier losses due to price depreciation and management fees.

XLM Market Indicators Hint at Possible Correction

Despite the bullish sentiment, technical indicators suggest that XLM may be overbought. The Relative Strength Index (RSI) has soared to an all-time high of 92.54, significantly above the typical overbought threshold of 70. An RSI at this level often precedes a price correction as buying pressure may soon wane.

Moreover, XLM’s price is trading above the upper line of its Bollinger Bands, a signal that the asset is overextended. This indicator measures market volatility and trading above the upper band suggests an imminent pullback.

If a correction occurs, analysts point to support levels at $0.35 and $0.23. However, if buying pressure persists, XLM could attempt to breach $0.7โ€”a high not seen since May 2021.

On the Flipside

  • Overbought technical indicators may lead to a short-term price decline.
  • A significant portion of trading volume comes from a single exchange, potentially skewing market dynamics.
  • Market volatility remains high, and sudden shifts could impact XLM’s upward trajectory.

Why This Matters

Stellar’s impressive rally underscores the opportunities and risks inherent in the cryptocurrency market. Understanding the factors driving XLM’s surge and the technical indicators pointing to a possible correction is crucial for investors. Stellar’s performance could set the tone for altcoin markets and influence broader investor sentiment in crypto.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a reporter for DailyCoin covering all Ripple (XRP) developments and market analysis. Kyle's has major XRP holdings, moderate in Solana and Ethereum, and minor holdings across 20+ other cryptocurrencies.

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