Stellar (XLM) surge 95.47% in 7 days, but Egrag Crypto predicts a cycle peak ranging from $1.50 to $3.70.
Stellar’s XLM has captured significant market attention, displaying sharp price movements over recent days. As of now, the crypto trades at $0.4486, reflecting a 15.05% decline in the past 24 hours. Despite this, the asset has surged 95.47% over the last seven days, signaling heightened market activity.
An analyst on X, Egrag Crypto, has pointed to several critical factors influencing this volatility and its upward trajectory. Insights suggest that both technical patterns and market dynamics play a role in Stellar’s price momentum.
Key Drivers Behind XLM’s Price Surge
Notably, according to Egrag, a substantial capital injection has been identified as a primary catalyst. This influx of funds into XLM indicates a rising demand and growing interest in the crypto.
#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
Additionally, shifts in the order book dynamics contributed to the upward trend. Thin order books, characterized by low liquidity, saw large buy orders that pushed prices higher. These conditions created a chain reaction, amplifying the momentum in a relatively short period.
Another noteworthy factor is Stellar’s breaking through low-volume areas, or zones with minimal trading activity. These areas, marked by sparse volume bars on the Volume-Range Profile, provide less resistance to price movements.
Also, XLM always copies XRP as XRP rose from $0.55 to $1.60; soon after, XLM Started to rise. Ripple CTO, mentioning the same point, said in September that “Even over 8 years, XRP price and XLM price track absurdly well.”
Technical Patterns and Predictions
Further, several technical analyses have emerged, predicting further gains for Stellar. This projection implies potential gains of 233% to 343% from recent levels. Notably, Egrag also anticipates XLM targeting a cycle peak ranging from $1.50 to $3.70.
Charting Guy, another market commentator, highlighted a long-term bullish pattern forming on Stellar’s monthly chart. This Adam and Eve pattern, established since 2017, suggests a breakout could propel XLM to $3-$5.
More Conservative Predictions
Egrag’s November 18 analysis emphasized that XLM’s recent weekly gain is likely the beginning of further upward momentum. Having already climbed an impressive 2,312% from its lowest point this cycle as of the 18th, XLM is projected to see additional gains. Egrag particularly anticipates the crypto could rise another 850%, reaching a potential target of $2.27.
On the same day, Egrag had identified a wave-like price structure that suggests an imminent breakout into the “Inter Stellar Gateway zone.” Here, the prices might attain a price between $0.794 and $1.057.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
