Things might be about to get juicy for Stellar XLM holders, as some price action suggests. On Sunday, a crypto analyst named Crypto Ninja revealed a price pattern on X that shows a correlation with a strategic period in history when the price of XLM saw a major spike.
Based on the pattern, XLM consolidated within a range on the monthly chart for a long time between 2015 and 2017. This could indicate a period of accumulation and acceptance of the crypto’s solution.
During the 2017 bull run, the price saw a breakout from a level around $0.003, which was also the 0.382 Fibonacci level. This breakout led to a major spike from that level to around $0.50, 3.33 Fibonacci extension level, resulting in more than a 16,000% increase (more than a 160x price increase).
The Same Pattern Has Emerged Again
A similar pattern has emerged again on the one-month chart. XLM has been trading slightly sideways and downwards since 2021. The price is currently breaking out of that level and is also trading above the 0.382 Fibonacci level.
One of the principles of technical analysis is that history often repeats itself, and past price patterns can be indicators of what is to come. With this major breakout, a successful breakout could signal the start of a significant rally for XLM’s price.
Taking a reference from history, a spike to the peak Fibonacci level (of 3.33) experienced in 2018 would bring the price to $200 per XLM token, while a 16,000% spike would take the price to around $30.
Are Spikes to $30 and $200 Realistic?
The patterns could be a sign that a major pump is ahead but a $30 target may not be realistic not to mention $200.
Commenting in the analyst’s chat, some analysts express excitement about an incoming spike, while others are not comfortable with the potential targets.
One analyst, named Mickey and his monkey, discussed that the $200 target not being realistic. His main argument is based on the current market cap of XLM, which is around $7.3 billion. With this kind of market cap, the analyst doesn’t see a spike to $200 as possible.
Read Also: Positive Metrics Align for Ripple (XRP) Bullish Continuation: Expert Predicts Spike to $8
One might also need to consider that when XLM saw its major spike of more than 16,000%, the crypto market wasn’t as saturated, and there were limited options for investors.
With many cryptocurrencies being introduced every month, the market is becoming increasingly saturated and more mature, giving investors many options for their money.
Therefore, it may not be realistic to expect such wild spikes during this bull run. Perhaps some technological breakthroughs for Stellar and increased adoption could steadily take it to such levels in the years to come.
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