Stellar Lumens (XLM) has been on a tear recently, with its price skyrocketing 172% in the past month and a staggering 342% in the last 90 days. Currently ranked as the 17th largest cryptocurrency with a market cap of $12.7 billion, XLM trails Polkadot (DOT) by a billion dollars. However, analysts believe that this is just the beginning of an explosive run.
EGRAG CRYPTO, a prominent analyst, has drawn parallels between XLM’s current price action and its 2020 surge. In 2020, XLM broke above its Exponential Moving Average (EMA) on a two-week chart, leading to a 3,100% rally to $0.80. A similar breakout occurred in 2023, and EGRAG CRYPTO predicts that XLM is poised for another massive surge, potentially reaching $2.27, representing a 360% increase.
While this upward trajectory is promising, EGRAG CRYPTO cautions that the journey to $2 will be fraught with resistance and corrections. The analyst has already predicted and observed a 44% correction, suggesting that another pullback could occur before the final push.
In the short term, EGRAG CRYPTO believes XLM could surpass its all-time high of $0.90 and even reach the $1 psychological level. After a potential temporary retracement, the asset could then embark on a final surge towards $2 or even $3.
Another analyst, Rose Premium, is also bullish on XLM, predicting a doubling of its current value to $0.98. However, this prediction hinges on sustained momentum and the bulls maintaining control above the $0.40 level. A breakdown below this level could trigger a 35% decline to $0.3235.
Technical analysis suggests that XLM has formed a bullish pennant pattern, indicating potential upside. If the asset breaks above the $0.6355 resistance level, it could target $0.7960 and potentially the $1 level. Conversely, the formation of a hanging man candlestick pattern suggests that a bearish move could ensue if the bears push XLM below its lower support level.
Also Read: Stellar (XLM) Sets Sights on $2 As This Analysts Predict Massive 360% Surge
As XLM continues to attract attention, investors should closely monitor its price action and technical indicators to make informed decisions. With bullish sentiment prevailing and analysts predicting significant upside, XLM could be a cryptocurrency to watch in the coming months.
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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