The XLM price has staged a strong comeback in the past two weeks and is on the verge of a bullish breakout as the crypto bull run accelerates. Stellar token rose to $0.3200 on Wednesday, its highest point since March 4. The price has surged over 54% from its lowest point in April.
XLM Price Technical Analysis
The daily chart shows that the XLM price has jumped after bottoming at $0.20 in April this year. It has formed a falling wedge chart pattern, a popular bullish reversal sign consisting of two descending and converging trendlines.
Stellar price has also formed an inverse head and shoulders chart pattern, a popular bullish reversal pattern. This pattern comprises a head, shoulders, and a neckline. The head section costs $0.20, while the right and left shoulders are around $0.23. Stellar’s price has now increased above the neckline, to $0.300.
XLM price has moved above the 61.8% Fibonacci Retracement level at $0.2910. It has also moved above the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has approached the overbought level. The Average Directional Index (ADX) has moved above 25, a sign that the trend is strengthening.
Stellar price has formed a bullish flag pattern, a popular continuation sign. This pattern consists of a vertical line and a flag-like pattern. Therefore, it is likely that the coin will continue to rise, with bulls targeting the key resistance level of $0.6415, which would be an increase of 105% from the current level.
The bullish XLM price forecast will be invalidated if it falls below the key support at $0.20.
Why the XRP ‘Cousin’ Could Surge
There are a few reasons why the XRP ‘cousin’ will surge in the coming weeks. First, a major factor contributing to Stellar’s potential surge is the possible approval from the SEC for a spot XLM ETF, leading to inflows from Wall Street investors.
READ MORE: Bitcoin Price Prediction: 3 Charts Explaining the Coming BTC Surge
Second, Stellar’s stablecoin ecosystem has surpassed $353 million in total value and is expected to continue rising. This is significant because Stellar aims to be a major player in the peer-to-peer payment industry.
Third, the network is seeing strong growth. The number of active addresses increased by 5% to over 142,000, and overall active addresses surged by 2% in the last 30 days to over 73.5 million. The network has witnessed a 60% spike in fees.
The XLM price will also benefit from the upcoming Bitcoin price surge, with analysts predicting that XLM will benefit from a Bitcoin price surge. Forecasts suggest Bitcoin could reach between $200K and $1 million in the coming years.
READ MORE: Here’s Why Stellar’s XLM and Ripple’s XRP Prices Are About to Surge
