Last week, Stellar (XLM) grabbed headlines as the Stellar Development Foundation announced that it burned 55 billion XLM coins to effectively halve the circulating supply. News of the halving catalyzed an impressive pump that saw XLM climb by over 30% in less than 48 hours.
Unfortunately, the crypto token gave up most of its gains. Smart money investors took the rally as an opportunity to lock in profits. As a result, Stellar Lumens lost bullish steam. The cryptocurrency then nosedived to $0.07. That was the price that XLM was trading before the news of the halving triggered the pump.
While those who bought due to FOMO (fear of missing out) got burned, those who waited for the pullback to be over were rewarded. Stellar has managed to post gains of over 20% in four days.
On Tuesday, XLM managed to ascend to as high as $0.08265 before succumbing to profit-taking. That’s an increase of 21.6% since the Nov. 8 low of $0.06799.
Despite the recent slide in the last few hours, analysts are turning mighty bullish on the cryptocurrency. For instance, trader Beastlorion considers XLM as one of two of the most bullish large cap coins.
Nick Hellman, vice president of LearnCrypto.io, shares Beastlorion’s view that Stellar Lumens is bullish. On Monday evening, the analyst characterizes the pullback after the halving as “healthy.”
Other traders are looking at the BTC base pair. Trader Stacking sees a double bottom reversal on the XLM/BTC pair. The analyst predicted that the cryptocurrency will target 960 satoshis (0.00000960).
Trader CJ has a more aggressive target. Though his analysis is from last week, it’s still relevant. The analyst expects Stellar Lumens to go as high as 1,100 satoshis. That’s a growth of over 25% from the current price of 876 satoshis.
Saying that XLM is in a bull market right now might be a call that’s a little too early. However, Mr. Hellman seems convinced that the cryptocurrency is trending up. He told CCN.com,
I think the bull market for XLM has already began. It formed a nice base during September and has been in an uptrend ever since.
I looked at the chart and saw that Stellar Lumens built a strong base above $0.058 in September. This enabled the pair to paint a double bottom reversal pattern.
In addition, Hellman said,
There will be some short-term volatility due to some major fundamental news; including the elimination of network inflation and 55 billion coins being burned. But, once the dust settles it will still resolve to the upside.
It’s possible that today’s drop in Stellar’s price might be an opportunity for some investors. If Nick Hellman is correct, we might see Stellar perform well in the next few weeks.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns Stellar Lumens (XLM) and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified: October 6, 2020 6:30 PM