Over the past week, Stellar native cryptocurrency, XLM, has experienced a solid 180% increase, causing a stir in the cryptocurrency market. As the token approaches its all-time peak, investors and analysts are abuzz with excitement.
Stellar’s market capitalization has reached $17.3 billion, surpassing Shiba Inu and approaching the top 10 cryptocurrencies, following an impressive 480% increase in the last month.
Many people are wondering if XLM can keep up this impressive performance or if it is about to take a turn for the worse. The path of the token is definitely interesting, even though experts seem to have different opinions.
#XLM price has increased by over 480% in the past 30 days and more than 180% in the past 7 days. Currently, #Stellar is trading at $0.566, meaning it is only a few steps away from reaching its previous all-time high. pic.twitter.com/SrdPgDAoio
— Cryptowizard101 (@realwizard101) November 24, 2024
Stellar: Riding A Wave Of Optimism
The significant buying interest and expanding investor confidence that drove XLM’s price increase from $0.302 to a peak of $0.6342 are indicative of a robust bullish push. Stellar’s founder, Jed McCaleb, heightened the anticipation by referring to the initiative as “the most underrated and least understood crypto.”
A lot of new people looking at Stellar so I thought I’d write down some quick thoughts about why Stellar is worth your time.
IMHO Stellar is the most underrated and least understood crypto project. A lot of recent attention but people are still sleeping on this network.Stellar…
— Jed McCaleb (@JedMcCaleb) November 23, 2024
His audacious statement is consistent with the increasing sentiment that Stellar’s potential is finally being acknowledged.
Historical tendencies support optimism. XLM’s recent rise resembles its November 2017 and 2021 explosions, suggesting a cyclical trend. Analysts say the token is about to break out of a long-term descending triangle pattern, which might lead to a bullish phase if resistance levels are broken.
Overbought?
In spite of the current surge in interest, technical signs point to caution. The Relative Strength Index for XLM has risen to 92, much above the 70 threshold for an overbought level. This frequently acts as a precursor to a potential price adjustment.
Similarly, the price of XLM has broken beyond the upper limit of its Bollinger Bands, a measure of volatility. This suggests that the asset may have been overextended.
The Road Ahead For XLM
Though there is always chance of short-term challenges, XLM’s long-term future seems bright. In the next three months analysts predict an 81% rise; in the next six months a 48% rise; then in the next year a 41% rise. These figures clearly show the great faith in Stellar’s foundations and the optimistic momentum of the larger market.
The primary concern is whether Stellar can maintain its growth and reclaim its all-time high as it approaches critical resistance levels. Although caution is necessary, the current rally emphasizes the growing interest in Stellar’s ecosystem, rendering XLM a token that should be closely monitored in the months ahead.
Featured image from shutterstock/Yuriy Mazur, chart from TradingView