Stellar (XLM) Buy Signal Emerges: Potential 25% Rally Ahead

• Analysts have hinted that Stellar Lumens (XLM) is forming a bullish pattern that could send the price to $0.45 in the near term. 
• Another analyst has predicted that XLM could be hitting between $2 and $3 once it successfully secures a crucial resistance level. 

Stellar Lumens (XLM) shows signs of recovery after surging by 3% in the last 24 hours. However, its weekly performance remains at 18% down according to our market data.

Technical Analysis

Subjecting the asset to technical analysis, an analyst identified as Ali Martinez has observed that XLM could launch an explosive run upsurge if it successfully holds above the $0.33 support level. Using the TD Sequential, Martinez hinted that the asset is currently showing a buy signal. Meanwhile, XLM has been consolidating within the range of $0.34 and $0.39. A successful break above this level could position XLM at $0.45, representing a 25% surge.

Source: Ali Martinez

On the bearish side, XLM could lose 33% of its value to fall to $0.22 once it fails to maintain its momentum above the $0.33 level. Delving into other metrics, XLM’s daily chart was found to indicate an overstretched price, which is far from the 200 Exponential Moving Average (EMA). According to our analysts, this indicates a potential uptrend.

In addition to this, the XLM spot inflow/outflow metrics indicated that $6.5 million worth of XLM has been withdrawn from various exchanges for self-custody. With this, analysts have explained that there is a significant level of buying pressure among long-term holders and traders.

Binance’s XLMUSDT pair’s long/short ratio also stands at 1.8. According to our analysts, 65.4% of the top traders on Binance hold long positions, while 34.6% hold short positions. With all of these into play, analysts have observed that bulls could be taking over the market to drag the price to its initial target of $1 in early 2025. From this level, XLM is expected to proceed to the $2 level for the first time.

Possible Catalysts for XLM’s Upsurge

After analyzing several factors suggested by analysts as possible bullish points, CNF categorized them into two – technical elements and speculative elements.

Under the technical elements, technological adoption was reported to be the first point of call in a period of neutral sentiment. According to analysts, the asset has been adopted at an increasing rate and could be the main driving factor for its bullish scenario. In addition to this, its limited supply is said to position the price at an upsurge as long as demand continues to increase. Finally, the historical trend confirms a possible bull run in 2025.

Under the speculative elements, analysts pointed out the bullish market trend of XLM. According to a prediction shared by EGRAG CRYPTO and published by CNF, the asset could hit $2-$3. Additionally, trading leverage and general market dynamics are reported to be the next bullish catalysts for XLM.

With the recent ascension of XLM to its yearly high of $0.63, EGRAG CRYPTO highlighted that three major factors may have played a crucial role, and these are the major capital injection, order book dynamics, and low volume areas.

#XLM Why it Pumped Aggressively:
Several factors contributed to the strong and rapid surge in #XLM‘s price:
1) Major Capital Injection
A significant inflow of funds into #XLM triggered the sharp price movement, indicating growing market interest and demand.
2) Order Book… pic.twitter.com/FpfIpZXxjT— EGRAG CRYPTO (@egragcrypto) November 26, 2024