Stellar (XLM) price appears to be preparing for a significant upswing and could follow its 2017 rally, according to analysts. Cryptocurrency analyst JavonTM1 opines that if the history will follow a particular pattern, XLM has potential to increase up to 1,100% and the price will be in the range of $6-$9.
This projection is made considering the long-term chart structure of Stellar, which has similar patterns to previous to its rapid price increase in 2017.
Historical Pattern Signals a Potential Breakout for Stellar Price
The chart displayed above reveals a trend common with Stellar in which the token spends long-time in a channel before a breakout. Stellar in the year 2016 to 2017, followed the multi-year consolidation then surged with a 10x return. According to JavonTM1, XLM is testing a similar setup after it came out from yet another multi-year channel.
This recurring pattern suggests Stellar is on the verge of another parabolic move, provided it successfully breaks through historical resistance. The analyst focuses on the price range of $0.85 to $1.00 as the level that is crucial for the upside momentum. Should the price break out above this zone, there should be huge buying interest that would propel XLM to higher levels.
The projected target range of $6 to $9 aligns with the magnitude of Stellar’s past breakout. Analysts suggest that strong technical setups combined with positive market sentiment could drive Stellar toward these levels.
Key Technical Indicators: Moving Averages and RSI
In the 1-Day chart, Stellar continues to exhibit an upward trend due to the recent movement of the price. The price of XLM surged to $0.60 in November after a major shift before it dropped slightly. At the moment, the price is in a range near $0.4423, which indicates a temporary slowdown in the uptrend.
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A Golden Cross occurred in November where the 13-day MA crossed above the 49-day MA. This technical signal is often seen as an indicator of sustained upward momentum. Despite the short-term correction, XLM’s price remains above the long-term MA, reflecting continued bullish strength.
The Relative Strength Index (RSI), which measures price momentum, has cooled to 54.64 after reaching overbought levels in November. This decline suggests that selling pressure has subdued and there is more room for an upward movement. If XLM maintains its position above the support levels, RSI indicates that there may be increased buying pressure.
Support, Resistance, and Market Outlook
Stellar encounters first resistance instantly at $0.50 which is a psychological and resistance level. Should the price breakout through this level, it will open a possibility for the continuation of the upside move and retest the $0.85 to $ 1.00 resistance zone.
Experts regard this level as crucial in determining whether there is a continuation of the uptrend among Stellar’s price.
On the flip side, $0.4420 served as short-term support in line with the 13-day MA. The next supports are $0.3499 if the selling pressure continues and this is the breakout level from the recent upward move.
Longer-term trend support is at $0.0950, although analysts believe that a deeper correction is unlikely given the current overall environment.
The market outlook remains bullish as Stellar continues to consolidate after its November surge. Analysts suggest that maintaining support levels and breaking through resistance could validate JavonTM1’s projection of a potential 11x move.
At the same time, Stellar’s team has issued a warning to its users about rising scam activity, thus gaining more trust from traders. However, by staying cautious and monitoring critical technical levels, investors can position themselves for a possible parabolic breakout while protecting their assets.
