Possible Stellar Rupture Imminent in Near Future
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Stellar (XLM), the eighth-largest cryptocurrency by market capitalization, is currently gaining attention from seasoned investors due to a potential major reversal. The current XLM setup suggests significant appreciation potential, similar to what XRP experienced earlier this year.
The price of XLM is sketching a potential major reversal, supported by an inverse head and shoulders pattern. This technical formation occurs after a prolonged period of decline and approaches a major psychological resistance level. Analysts are targeting objectives at $0.71 (extension 1.618) and $0.77 (extension 1.786), representing a potential increase of around 57%.
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The neckline of the figure is around $0.50, and in case of a clear break with solid volume, a bullish impulse could deploy towards the next calculated technical levels via Fibonacci extensions. However, the recent liquidation of the trendline and subsequent retracement suggests smart money used FOMO to distribute. XLM could potentially go lower, down to $0.29 or $0.22, two accumulation and demand zones.
A daily close above $0.50 accompanied by significant volume is required for technical confirmation. In the absence of a break, the price could test support zones: $0.40 (first defensive threshold) and $0.36 (critical level in case of a deeper decline).
Additional bullish indicators include a golden cross of the 50-day and 200-day EMAs and a bullish flag pattern, reinforcing the expectation of a price surge potentially reaching about $0.67 in August, based on the measured move from the flagpole.
Charles Ledoux, a Bitcoin and blockchain technology specialist, has written numerous articles and masterclasses to educate newcomers to the industry. He emphasises that the durable partnership with MoneyGram and various financial institutions continues to anchor Stellar XLM as a viable infrastructure for tokenized finance.
The network is increasingly used for cross-border interbank transfers in connection with initiatives to digitize local currencies (CBDC). These factors contribute to a positive outlook for XLM in the long term.
In summary, the current outlook for Stellar (XLM) is bullish, supported by an inverse head and shoulders pattern along with other positive technical formations, suggesting a potential upside near $0.47 to $0.70 in the short to medium term. Key technical levels to watch include a resistance breakout above $0.42, which could lead to a rally targeting at least $0.47 within weeks, while strong support lies around $0.38. Longer-term, the potential to exceed $1.00 with Protocol 23 upgrade and network growth remains. However, some volatility and corrective phases are anticipated along the path.
- To further expand knowledge in the field of crypto and finance, consider enrolling in the 'Crypto Academy' by Charles Ledoux, a renowned Bitcoin and blockchain technology specialist, where you can learn about Stellar (XLM) and its potential in tokenized finance.
- By understanding the technology behind Stellar (XLM), such as its increasing usage for cross-border interbank transfers and digitized local currencies, investors might find it appealing for long-term investments, particularly as it partners with various financial institutions.
