Reason behind possible XLM price doubling:
Stellar (XLM) is showing signs of a potential 100% price rally, according to various technical and fundamental indicators. Here's a breakdown of the key factors to watch and potential risks to anticipate.
Bullish Signals
A 100% XLM rally is more likely if strong bullish technical signals align with growing network usage and fundamental adoption. Key indicators include:
- Technical breakout confirmations: The price breaking and sustaining above major resistance points like $0.50 and $0.463, historically acting as resistance and trigger points for rallies.
- Bullish chart patterns: Such as the inverted head and shoulders and reverse head and shoulders, signalling trend reversals and potential strong uptrends.
- Strong trading volume: Accompanying price breakouts, which helps validate momentum and reduces the risk of bull traps.
- Positive moving average crossovers: Such as the golden cross where short-term MA crosses above long-term MA, signalling an upward trend.
- On-chain fundamentals: Including an increase in Total Value Locked (TVL) indicating growing network adoption and utility, particularly in cross-border payments.
- Support levels holding: Providing a stable price floor allowing for bullish moves.
Risks to Anticipate
Investors must also be aware of potential risks that could dampen the rally or lead to pitfalls common in volatile crypto markets. Risks include:
- Failure to sustain price above critical resistance levels: Which could trigger sharp sell-offs or prolonged consolidation.
- Bearish technical signals: Such as the MACD bearish crossover and RSI falling below neutral, indicating loss of momentum and increased selling pressure.
- Breakdown below important short-term moving averages and critical support zones that can lead to deeper corrections or extended bear phases.
- Market-wide macroeconomic pressures and regulatory uncertainties that continue to dampen overall crypto sentiment and can stall rallies.
- The risk of a "bull trap", where a breakout leads traders to expect a rally but price reverses sharply, especially if volume is weak or TVL growth stalls.
Current Stellar (XLM) Price and Outlook
Stellar's price is currently pushing above $0.46, with $0.50 acting as the immediate psychological resistance. The "mast and flag" pattern on the daily chart of Stellar (XLM) has been broken, strengthening the bullish argument.
Caution is advised due to the risks of profit-taking that could temporarily slow down the momentum for Stellar (XLM). To take advantage of the potential 100% upside of XLM, users can follow a guide to get the token on Bitget.
Charles Ledoux, a Bitcoin and blockchain technology specialist, has written numerous articles and masterclasses to educate new entrants to the industry. The potential upside for Stellar (XLM) is around 100%. Historically, a similar triple EMA crossover pattern for Stellar (XLM) led to a 122% price increase.
At Charles Ledoux's Crypto Academy, you can learn about the potential of Stellar (XLM) showing signs of a 100% price rally. As a sports enthusiast, you might be interested to know that the perspective of Stellar's price growth mirrors the strategy in sports: staying aware of bullish signals and potential risks can help you seize the opportunity, just like in sports where understanding your team's strengths and weaknesses can help lead to victory.
