Here's Why Stellar Can Increase by 50% | Credit: Hameem Sarwar
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Key Takeaways
Stellar (XLM) broke out from a descending parallel channel.
The XLM price increased by over 12% on July 9 before cooling down.
Can XLM sustain its breakout and reach a new yearly high?
Stellar (XLM) is showing signs of life after breaking out of a long-standing parallel channel.
With momentum picking up and a bullish wave structure forming, XLM could be gearing up for a potential 50% move.
Let’s dive into the charts and break down the key levels to watch if this rally is going to play out.
XLM’s Bullish Breakout
The weekly chart shows Stellar (XLM) dropped about 35% between May 12 and June 22.
This was a steep decline, but one that stayed neatly within a descending parallel channel, suggesting the move was corrective rather than a full-blown trend reversal.
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Momentum indicators add to the bullish XLM analysis. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bullish divergences (orange).
Despite failing to close above the 0.618 Fibonacci level, the XLM technical analysis is bullish.
Let’s look at the wave count to figure out the next targets.
XLM Ready to Rally
With two valid counts, the wave count gives a bullish XLM price prediction.
While it is unclear if XLM is in wave C or wave three of a five-wave increase, both predict an incoming surge.
If the XLM price is in wave C, an increase to at least $0.358 is likely, giving it the same length as wave A.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
