Analysts are again watching Stellar (XLM), making bold predictions of a 2,160% price increase.
The cryptocurrency, at $0.48, is projected to surge above the $11.1 mark, according to Javomn Markes. He based his analysis on its past performance and technical indicators.
Despite these outlooks, daily losses of XLM exposed lingering skepticism on the part of traders in the current market.
Source: X
Bullish Projections: $11.1+ Target Based on Fibonacci Analysis
The technical reason for a sharp increase in XLM’s price is in the performance of this asset in previous bull cycles and Fibonacci extension levels.
Analysts anticipate XLM price will rally exponentially during bullish phases. It is an ability that the historic asset has proven it has in the past.
We can use the Fibonacci retracement tool to find key support and resistance levels to glean potential extension targets of $2.12, $8.39, and an overwhelming $11.32.
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The Fibonacci chart shows XLM has already broken out of a long consolidation period. It had a propensity this for before major rallies.
The $0.577 level has become a key resistance point that would provide more fuel to the fire above if beaten off.
According to analysts, these higher targets would mean surpassing this threshold. That’s ambitious, but then again, so have XLM rally moves before, with the 2017 bull run being the most notable.
Stellar Price: Current Market Outlook
Despite the long-term optimism, Stellar’s short-term performance is more subdued. As of writing, XLM crypto is trading at $0.4787, a 1.18% drop within the last 24 hours.
Trading volume has declined significantly as XLM’s 24-hour volume is down 19.32% to $900.55 million.
Its market cap, but curiously in this case, remains robust at $14.58 billion, still placing among the top 20, yet the volume is not there, leading to a wait-and-see attitude from investors.
On a technical basis, XLM is a mixed bag. In smaller timeframes, such as the four-hour chart, the token holds within an upward channel.
The asset is trading within this structure between support around $0.45 and resistance near $0.50.
This channel indicates a quieter period of relative stability; however, any decisive breakout in either direction from here will likely determine the outcome of the coming weeks.
On the 4 hour chart, the Awesome Oscillator (AO) displays weakening bullish momentum, which could lead to some retracement if the buyers don’t regain control.
If the token were to break above $0.50 resistance, there is a renewed opportunity to drive price tests of the critical $0.577 area pointed to on the Fibonacci chart.
4-hour XLM/USDT Chart | Source: TradingView
When we move towards the Stellar price daily chart, a bigger story appears. In the past few hours, XLM broke out from a multi-year accumulation phase and is looking to set another uptrend.
However, there are formidable resistance zones overhead that will help you navigate this journey.
As XLM maintains the break above the 38.2 Fib, traders will watch closely to see if the cryptocurrency can uphold the momentum and add to the bullish foundations created by the recent breakout.
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