Stellar’s native asset, XLM, has risen by 100% in just 7 days, signaling an increase in trading volume. Currently, XLM price is $0.49, extending its surge with a 10% rally in the last 24 hours.
Analysts attribute the rapid rise to capital inflows into exchanges and low market liquidity. They also point to technical breakouts through low-volume zones. Significant amounts invested into XLM are among the key reasons for the price growth, demonstrating increased attention from buyers.
Stellar’s low market liquidity played a key role in boosting its price rally due to thin order books. Large buy orders in this low-liquidity environment created a domino effect, driving prices further upward and amplifying the rally.
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Market analysts also identified that XLM has the capacity to cut through low-volume zones, which are regions with little trading resistance. These zones, shown on the Volume-Range Profile, have historically allowed faster price changes. This characteristic contributed to the recent increase.
XLM Price Mirrors XRP Movements With Promising Short-Term Targets
XLM recent price action has closely followed patterns observed with Ripple’s XRP. The two have demonstrated several correlations over the years, making it possible to track their performance over time. In September, Ripple’s CTO also compared the two coins and noted that XLM tends to mimic movements of XRP both short-term and long-term.
The current upswing in XLM follows the same pattern that was evident when XRP increased its value from $0.55 to $1.60. These historical correspondences shape the investing perspectives and the Stellar (XLM) trading movement.
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In the last 24 hours, both XRP and XLM have witnessed notable price surges, with XRP climbing by 8% to $1.43 and XLM rallying by 15%. The heightened trading volumes for both cryptocurrencies reflect increasing market demand.
Analysts Predict XLM Could Reach $1.50 to $3.70
More so, this is supported by the technical analytical tools indicating more upside for XLM with price forecasts of a high between $1.50 and $3.70. Egrag Crypto, a market analyst, predicts that the possible appreciation of the currency could be by 343% from the present levels.
In his previous analysis, Egrag pointed out a wave forming the price structure that could burst into what he describes as the Inter Stellar Gateway zone. Relative to this zoning, the estimate of the short-term price range is between $0.794 and $1.057.
Egrag also noted that XLM has been up 2,312% from its low for this cycle. He expects a further rise of 850%, which might take the token up to $2.27 in the nearest months.
Long-Term Bullish Patterns Suggest Peaks Beyond $3
Additional XLM price technical analysis reveal positive future performance in the long run. According to market commentator Charting Guy, there’s an Adam and Eve pattern on the monthly chart of Stellar.
This pattern has been forming since 2017 and it usually points to a higher breakout on long-term bull trends. If this pattern occurs, XLM might reach prices of between $3 and $5.
These projections by Egrag Crypto are backed up by further forecasts for the token in the long run. Egrag’s price predictions are that XLM price could increase by as much as 850% from today’s rates of trading and reach $2.27 in the mid-term.
This growth is consistent with the trends observed in previous cycles and is indicative of improving confidence in Stellar.
Moreover, most recently, XLM open interest surged to an unprecedented $420 million, surpassing its previous high of $180 million recorded in April 2021. This reflects heightened demand, particularly in the derivatives market, highlighting strong investor interest.
