The market capitalization of Stellar has reached $17.3 billion, surpassing Shiba Inu and approaching the top ten cryptocurrencies, while Stellar's price soared by 480% last month.
Many are wondering whether XLM can maintain this impressive performance or if it is about to see a reversal. While experts seem to have differing opinions, the trajectory of the token is certainly interesting.
Stellar: Riding the wave of optimism
The huge buying interest and increasing investor confidence drove the price of XLM from $0.302 to a peak of $0.6342, indicating a strong bullish market. Stellar's founder, Jed McCaleb, referred to the project as 'the most undervalued and least understood cryptocurrency', further raising expectations.
His bold statement aligns with the growing sentiment that Stellar's potential is finally being recognized.
Historical trends support the optimistic sentiment. The recent rise of XLM is similar to the surges in November 2017 and 2021, indicating a cyclical trend. Analysts say the token is poised to break out of a long-term descending triangle pattern, and if the resistance level is breached, it could enter a bullish phase.
Overbought?
Despite the surge in interest, technical indicators suggest that investors need to be cautious. XLM's Relative Strength Index (RSI) has risen to 92, well above the overbought level threshold of 70. This is often a precursor to a potential price correction.
Similarly, the price of XLM also broke above the upper Bollinger Band (a volatility measure). This suggests that the asset may have become overextended.
The future path of XLM
Despite challenges that will always arise in the short term, the long-term outlook for XLM seems bright. Analysts predict that XLM will rise by 81% in the next three months; by 48% in the next six months; and by 41% over the next year. These figures clearly indicate a great confidence in the Stellar foundation and an optimistic sentiment in the broader market.
What people are most concerned about is whether Stellar (XLM) can maintain its growth and return to historical highs as it approaches a key resistance level. While caution is necessary, the current momentum highlights the growing interest in the Stellar ecosystem, making XLM a token to closely watch in the coming months.
