XLM Targets $0.86: Riding the XRP Momentum Wave
More from the Author Jane Kariuki
Stellar (XLM) is poised for a 60% rally by December 2024, driven by a bullish ascending triangle pattern and its strong 87% correlation with XRP, which has surged recently due to positive regulatory developments.
If market trends continue, XLM could break out to $0.86, mirroring XRP’s momentum.
Stellar (XLM) is gearing up for a significant rally, with analysts predicting a potential 60% price surge by December 2024. This optimistic forecast is driven by technical indicators and Stellar’s strong correlation with XRP (Ripple), which has enjoyed a stellar performance in November. Let’s dive into the details behind XLM’s bullish momentum.
The Ascending Triangle Breakout: A Key Bullish Indicator
On the daily chart, XLM is forming an ascending triangle, a classic continuation pattern that often signals further upward movement.
The ascending triangle forms when a cryptocurrency’s price oscillates between a horizontal resistance level and a rising support trendline. Buyers’ willingness to pay higher prices creates a pattern of higher lows, compressing the price into a tighter range. When this pressure culminates in a breakout above the resistance line, the price often rallies by the pattern’s maximum height.
For XLM, this means a potential breakout could push the token’s price to $0.86, a 60% gain from its current level.
Stellar and XRP: A Correlation to Watch
One of the factors strengthening XLM’s bullish outlook is its positive correlation with XRP. Historically, both tokens have moved in tandem due to their shared focus on cross-border payments and blockchain-driven financial solutions.
As of November 30, the 30-day average correlation coefficient between XLM/USD and XRP/USD pairs stands at an impressive 0.87. This indicates an 87% likelihood of the two tokens moving in the same direction.
XRP’s recent rally has been fueled by optimism around regulatory clarity for Ripple Labs. The New York Department of Financial Services (NYDFS) is expected to approve Ripple’s RLUSD stablecoin soon, further boosting XRP’s price, which has already surged over 280% in November.
Stellar could ride this wave of enthusiasm, leveraging its similarities with XRP to attract more market attention.
What’s Next for XLM?
As XRP approaches the $2 milestone, XLM stands poised to capitalize on the bullish sentiment in the crypto market. If the ascending triangle pattern resolves as predicted and the positive correlation with XRP continues, Stellar could see a breakout that propels it toward new highs.
Investors eyeing XLM should watch the market closely as December unfolds. A confirmed breakout could signal a profitable opportunity for those bullish on this promising token.
In Conclusion
Stellar’s potential 60% rally underscores the importance of market correlations and technical patterns in cryptocurrency trading. With both regulatory developments and chart dynamics aligning favorably, XLM might be set for a stellar performance to close the year.
The post XLM Targets $0.86: Riding the XRP Momentum Wave appeared first on Crypto News Focus.
