- Stellar’s XLM shows unique technical patterns that may push the price by 30%.
- With positive ecosystem developments, the Stellar protocol is primed for the uptick.
XLM, the native digital asset of the Stellar network, has formed bullish patterns in its charts. While crypto market volatility remains high, price prediction indicates a potential 30% surge ahead for XLM.
XLM Show Signs of Breakout
According to data from Market Cap, XRP has increased by 5.5% to trade at $0.3326. XLM reached daily lows and highs of $0.31 and $0.335, respectively. The daily trading volume has surged over 3.2%, suggesting renewed investor confidence.
Numerous market participants are closely monitoring the emerging pattern. Several technical indicators suggest that XLM could target multiple key resistance levels.
Meanwhile, some XLM price prediction models indicate conflicting signals. For instance, the 50-day Simple Moving Average dropped below the 200-day SMA when the Death Cross pattern emerged on charts.
Additionally, XLM appears bearish, as indicated by several technical indicators, such as the Directional Movement Index (DMI). This index registered a negative DI at 30.91, surpassing the positive DI at 17.85.
The DMI indicator helps investors identify trend direction, strength, and momentum. Calculations involve the positive and negative directional indicators and the Average Directional Movement Index (ADX).
The trend is turning bullish if +DI is crossing above -DI. On the other hand, the trend turns bearish if -DI is crossing above +DI, as indicated by the current figures. The ADX further confirmed strong downward movement at 31 amidst heightened crypto price volatility.
However, XLM has formed a falling wedge pattern at a resistance of around $0.3400. Citing this falling wedge, some analysts suggested that XLM could see a 30% rally toward $0.4450. As XLM’s performance remains under pressure, key supports have emerged at approximately $0.3047 and $0.2602.
Meanwhile, CoinGlass data showed that XLM liquidations reached $48,840 in the last 24 hours. Short positions totaled $30,050, topping long positions by $18,790. Multiple exchanges show interesting patterns, with Binance leading the pack with $28,740 in short liquidations.
Favorable Upsides for XLM
Several developments in the Stellar ecosystem could lead to positive outcomes for XLM’s future price trajectory. As highlighted in our previous article, Stellar has played an essential role in the digital payments revolution.
The network is well-known for enabling fast and low-cost cross-border transactions, attracting several market players to integrate with the platform. In a previous article, we reported that Cables Finance integrated into the Stellar network, becoming the first DEX to launch on Soroban.
In a similar move, Stellar recently partnered with Fonbnk, a digital wallet and Decentralized app (dApp). The partnership will allow prepaid SIM users to convert airtime credits into USDC stablecoins, addressing the financial needs of 350 million unbanked Africans.
Moreover, Stellar recently released its Q4 2024 report, highlighting substantial growth in network activity and its position in the Real-World Asset (RWA) market. As CNF discussed earlier, Stellar’s early positioning in this market could drive further network activity and demand for XLM.
