In the thrilling world of cryptocurrencies, Stellar (XLM) is one name that has been making waves. Towards the end of 2024, XLM experienced a significant upswing reminiscent of another popular crypto player — XRP. Known for its volatility, XLM saw robust directional movements, soaring by 522.22% from barely $0.09 before the U.S. Presidential elections to a high of about $0.56 by December 1st. More recently, the token has been battling to convincingly surpass $0.35, with its latest price lingering at $0.34.
Impending Rally for XLM?
On February 21, on-chain specialist Ali Martinez shared a technical analysis of this cross-border payments token, suggesting a potential resurgence in its rally. According to Martinez, the TD Sequential – a tool designed by well-known analyst Tom DeMark to predict trend continuations or reversals using historical performance – has issued a buy signal on XLM’s hourly chart.
While Martinez did not speculate on the potential price surge, XLM’s support and resistance levels on February 21 indicate a probable halt near $0.351 and an almost guaranteed stay below $0.36. The strength of XLM’s relationship with XRP also seems to support the bull case, with the technical analysis tool signalling an impending XRP rally.
Prospects of a Long-Term Rally for XLM
Looking at a broader perspective, the long-term prospects for Stellar also seem promising, given the current favourable external conditions for Ripple Labs’ token. Notably, the Securities and Exchange Commission has acknowledged an exchange-traded fund filing, and Brazil has greenlighted the world’s first spot XRP ETF.
Stellar-specific developments also contribute to its bullish outlook, although investors may have mixed reactions. On February 19, Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, announced through a post that the network is ‘feature complete’ for the next decade. Stellar has iterated that being ‘feature complete’ does not signify the end of innovation, but rather, is a commitment to scaling and reaching a total value locked (TVL) of $1.5 billion.
Stay Vigilant
Despite the positive outlook, it’s crucial to stay vigilant in the crypto space. Both XLM and XRP are sensitive to broader crypto market movements, which have been volatile due to several external shocks in recent weeks.
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FAQs
What is the potential of XLM?
With a strong correlation with XRP and promising developments within its network, Stellar (XLM) could potentially see significant growth in the coming future. However, as with all investments, it’s essential to stay informed about market trends and make decisions carefully.
How can I track XLM’s performance?
To stay updated with the latest trends and price predictions for XLM, consider downloading a leading cryptocurrency application like Finances Zippy.
What does it mean for Stellar to be ‘feature complete’?
When Stellar refers to being ‘feature complete’, it means they have completed the fundamental development work on the network for the next decade. However, this doesn’t signal an end to innovation – Stellar aims to continue to grow, scale and innovate within the platform.
What factors influence the price of XLM?
Several factors influence the price of XLM, including its correlation with XRP, developments within the Stellar network, and broader cryptocurrency market trends.
