Stellar (XLM) has made waves in the crypto market with a remarkable 7% price increase in just 24 hours. As of January 15, 2025, XLM is trading at $0.4705, and its market capitalization has reached $14.55 billion. This sudden surge has drives speculation: could XLM follow in the footsteps of XRP and see similar gains in the near future?
The recent breakout of XLM from a Symmetric Triangle pattern signals bullish momentum, prompting analysts to forecast a potential rally toward $1.05. But what does this price movement mean for XLM, and could it replicate XRP’s impressive rise?
After a sharp rise of 600% in November 2024, Stellar has been consolidating within a Symmetric Triangle pattern. This technical formation often signals a period of consolidation before a breakout, and XLM has recently broken out to the upside with strong volumes. This suggests that Stellar could be preparing for another bullish move.
The breakout occurred around the $0.4500 level, and by calculating the pattern’s height (approximately 132%), analysts predict a price target of $1.05. If this momentum continues, XLM could see substantial growth in the coming days, potentially hitting the projected target soon.
In addition to the technical breakout, XLM’s price is currently trading above its 20-day, 50-day, 100-day, and 200-day Moving Averages, indicating a strong upward trend. The Moving Averages confirm that XLM is in a bullish phase, and its ability to hold above these key levels will be crucial in maintaining this momentum.
The MACD (Moving Average Convergence Divergence) indicator also shows bullish momentum, with rising histograms indicating increased buying pressure. This aligns with the RSI (Relative Strength Index), which also suggests a surge in buying interest. Together, these indicators provide further confirmation that XLM’s bullish trend could continue.
Crypto expert Javon Marks recently shared a positive outlook for XLM on social media, citing the current market conditions and rising investor interest. With increasing buying pressure and a favorable technical setup, XLM is primed for potential gains.
Another encouraging sign for XLM is the increase in trading volume and open interest. Data from Coinglass reveals that open interest in XLM futures has soared by 38.33%, reaching $321.07 million. Meanwhile, trading volume has jumped by 36.66%, hitting $1.07 billion. These spikes in both open interest and volume indicate that investors are actively speculating on XLM, further bolstering the case for a potential rally.
As XLM continues to climb, it is currently facing a key resistance level at $0.4900. A breakout above this level could trigger a rally toward $0.5600 and $0.6400, marking significant gains for the token. However, if XLM fails to break through this resistance zone, it could face a retracement.
Support levels to watch include $0.4500 and $0.3900. If the price falls below these levels, it could signal a shift in market sentiment, and a deeper pullback could be in store. Therefore, traders should monitor these key levels closely to gauge the short-term direction of XLM.
Experts remain optimistic about XLM’s future. With a projected target of $1.05 based on technical analysis, XLM could experience a 54% move from its current price. A breakout above $0.681 would likely pave the way for XLM to aim for even higher targets, with $1.29 in sight in the short term.
The growing interest in XLM, combined with the favorable technical indicators, suggests that Stellar could be gearing up for a breakout rally similar to XRP’s recent performance. As more investors flock to the asset, the potential for substantial growth becomes more likely.
Recent data from Coinglass reveals a shift in market sentiment, with a significant amount of liquidation occurring in both long and short positions. In the last 24 hours, $2.34 million in total liquidations were recorded, with $542.88K coming from long positions and $1.80 million from short positions. This indicates that market participants are adjusting their positions, which could contribute to further volatility and potential price swings for XLM.
XLM’s recent breakout from the Symmetric Triangle pattern, combined with rising trading volume and bullish technical indicators, suggests that the cryptocurrency is poised for further growth. With a target price of $1.05 and the potential for a 54% move, XLM could be on the verge of a major rally.
However, as with any cryptocurrency, the market remains volatile, and there are key resistance and support levels that could influence XLM’s short-term direction. Traders should keep a close watch on the $0.4900 resistance level and the $0.4500 and $0.3900 support levels to determine whether the bullish trend will continue.
As Stellar (XLM) continues to gain traction, it will be interesting to see if it can replicate XRP’s path to higher prices. With increasing investor interest and a solid technical setup, XLM may very well be on the cusp of a breakout that could drive its price to new heights.
Get the latest Crypto & Blockchain News in your inbox.