XLM price has formed numerous bullish patterns in the past few weeks, pointing to an eventual 42% rebound in the coming months. The Stellar Lumens token was trading at $0.4437 on Monday, much higher than the year-to-date low of $0.2140. Here’s why the token may be on the cusp of a major bull run.
XLM Price Chart Signals a 42% Surge is Coming
The daily chart below shows that the XLM price has formed a series of highly bullish chart patterns this year.
It initially formed a giant falling wedge pattern between November last year and April 9 this year. This pattern comprises two downward-sloping and converging trendlines, with a bullish breakout happening when they converge. This wedge explains why it jumped to $0.5213.
Stellar price then formed a double-bottom pattern at $0.2140. This pattern has two distinct lows and a neckline, which, in this case, is at $0.3345. It has already rebounded and moved above the neckline, confirming the bullish breakout.
Most recently, the XLM price has formed a falling wedge pattern and has already started its breakout. This wedge was part of the formation of the bullish pennant pattern, which has a vertical line and a triangle.
Therefore, the most likely outcome is where the token stages a strong bullish breakout, with the next target to watch being at $0.6355, its highest point in November last year. This price target is about 45% above the current level. A move above that price will indicate further gains, reaching the psychological point of $1.
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Key Catalysts for the Stellar Lumens Token
Stellar Lumens token has numerous catalysts that may push it higher in the coming weeks. The first one is that the odds of a crypto bull run are rising, a move that will boost some of the best cryptocurrencies, including Stellar.
Additionally, Stellar is often seen as Ripple’s little cousin because of their common origin. Stellar’s founder, Jed McCaleb, was one of the founding members of Ripple.
The two projects started to disrupt the payment industry, with Stellar focusing on peer-to-peer solutions. As such, with the XRP price expected to rise, there is a likelihood that XLM will also rebound.
Third, the XLM price is expected to perform well ahead of the Protocol 23 upgrade, scheduled for September. This upgrade will introduce several improvements, including unified asset event emission for all Stellar operations, separation of ledger state into two databases, and a new transaction set structure for parallel execution of Soroban smart contracts.
Further, while no company has applied for a spot XLM ETF, there is a likelihood that one or more firms will do that. Besides, Stellar is the 13th biggest coin with over $13 billion in market capitalization.
Stellar’s ecosystem is also doing well as its total value locked (TVL) jumped to a record high of over $152 million, and its stablecoin market cap hit over $660 million.
