Stellar price, a popular cryptocurrency started by a Ripple co-founder, jumped by over 450% as the crypto bull run accelerated. XLM however, is now showing signs of exhaustion as its rally to $1 hits a snag. Still, crypto analysts believe that Lumen has room to go as the altcoin season starts.
Stellar Price Analysis: Early Signs Of A Bullish Pennant Showing
Stellar price was trading at $0.55 on Tuesday, November 3, down by 15% from its highest level in November. On the positive side, the coin is showing signs of forming a bullish pennant chart pattern, which is a popular sign of a continuation. A pennant is characterized by a vertical line and a symmetrical triangle pattern.
In most periods, this pattern often leads to a strong bullish breakout, especially when it is supported by high volume.
The XLM price has also moved above the 50-week and 200-week Exponential Moving Averages (EMA). It also remains above the key psychological level at $0.50 and the resistance level at $0.4400, its highest level in November 2021.
Stellar’s Market Value to Relative Value (MVRV) has slipped to 2.7 but remains significantly above its lowest level this year. The indicator remains below the extreme level of 6, which it reached in 2021.
Therefore, more Stellar Lumens gains will be confirmed if it blasts above the year-to-date high of $0.6347. A move above that level will be a signal that there are more bulls left in the market, who will be keen to push it to the all-time high of $0.80. A move to $1 will be confirmed if it rallies above that resistance level.
On the flip side, a drop below the support at $0.4402, its November 2021 high will invalidate the bullish view. Such a move will raise the odds of mean reversion, a situation where an asset drops to its mean. If this happens, Stellar price may drop to the key support at $0.20, its highest level in July 2023.
XRP To Determine The Next XLM Price move
Whether the Stellar lumens price jumps to $1 will depend on the next price action of Ripple. That is because the two cryptocurrencies often have a close correlation since they are in the payments industry. Also, Stellar was started by Jed McCaleb, a Ripple co-founder.
The two coins have jumped because of the recent Donald Trump victory and the impending changes at the Securities and Exchange Commission (SEC). Analysts expect that Ripple’s legal tribulations will end soon, opening for a potential XRP ETF. Similarly, Canary Capital has already filed for a spot XLM ETF, which could be approved in 2025, leading to more institutional investment.
Therefore, the odds of the XLM token hitting $1 will increase when Ripple continues its bullish trend.
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