Steller

Stellar Lumens (XLM) Price Poised for February Surge: Bullish Patterns Signal Potential 90% Rally

Stellar (XLM), currently trading at $0.4240, has seen a notable decline of 33% from its November 2024 peak. Despite this pullback, technical analysis indicates that Stellar may be primed for a significant rally in February 2025.

Several bullish patterns are emerging in the charts, suggesting that XLM could experience substantial price movements in the coming weeks. First, Stellar formed a bullish pennant pattern during its consolidation phase in December and January. This widely recognized continuation signal often precedes a breakout when the converging trendlines of the triangle give way to upward momentum. Given the strength of this pattern, a breakout could push Stellar’s price higher in February.

Source: CMC Data

In addition, the Elliott Wave theory supports further upside for Stellar. This pattern, comprising five phases, saw Stellar’s third wave peak in November, followed by a corrective fourth wave. As per the typical cycle, XLM could be heading into its fifth bullish wave, which often results in a sharp price surge.

Furthermore, a golden cross pattern has formed on the Stellar chart, where the 50-week and 200-week moving averages have crossed upwards. This technical indicator signals a long-term bullish trend, with the price staying above both averages, reinforcing the positive sentiment.

XLM price
XLM price chart | Source: crypto.news

Looking ahead, XLM could retest its all-time high of $0.7960, potentially marking a 90% gain from its current price. This projection is supported by historical trends showing strong cryptocurrency performance in February, particularly for assets like Bitcoin (BTC) and Ethereum (ETH), which could lift other coins such as Stellar and XRP.

Additional catalysts could also fuel Stellar’s rally. With Donald Trump exploring policies favoring “Made in USA” coins, Stellar, created in the U.S. in 2014, stands to benefit. Furthermore, an XRP ETF approval could boost XLM, as both coins share ties to the payment sector, with Jed McCaleb, Stellar’s founder, having played a key role in Ripple’s development.

Also Read: Stellar (XLM) Price Analysis: Bullish Momentum Faces Key Resistance – What’s Next for XLM?

As February approaches, Stellar’s chart is full of bullish signs, making it one to watch closely for potential price surges.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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