Stellar (XLM) has been consolidating since late November 2024, leading to several lower highs and suggesting profit-taking. However, between December 9 and January 11, the price action formed an inverse head-and-shoulders setup. This pattern forecasts that XLM could rally shortly.
Stellar (XLM)’s Bullish Pattern Signals Price Could Shoot 30%
The four-hour chart shows that Stellar set up three distinctive swing lows in the past two months, leading to an inverse head-and-shoulders pattern. This technical setup signals a reversal of the downtrend and forecasts a 31% move to $0.612. The target is obtained by measuring the head’s depth of 31% and adding it to the neckline at $0.466.
Overall, the outlook for XLM looks bullish as it overcame the $0.414 resistance level and flipped it into a support floor. This bullish development foreshadows the setup’s breakout rally.
For now, XLM should climb 10% to retest the neckline. Only overcoming this hurdle will confirm a breakout from the inverse head-and-shoulders setup, triggering the 31% move to $0.612.
With Bitcoin forming a potential bottom around $90K to $91K, the chances that altcoins kickstart a rally next week are high.
Is Bitcon Bottom In? Most likely.
January 9’s swing low ($91,151) could be the bottom. If not, then a sweep of $90,835 with a bullish swing failure pattern could suggest that a bottom is imminent.
https://t.co/H2Spj0mvEM pic.twitter.com/ohZ0zmlIsB— MAXPAIN (@Mangyek0) January 10, 2025
Therefore, investors need to focus on tokens that are showing strength. Stellar and Ripple are two such cryptocurrencies that could trigger volatile moves. Let’s explore how Ripple’s upcoming breakout could help Stellar’s XLM.
XLM Follows Ripple (XRP)’s Footsteps
Since Stellar (XLM) is a direct competitor to Ripple (XRP), the price action is often similar, ie., if XRP rallies, XLM will follow suit. Considering that Ripple is close to a breakout from a symmetrical triangle, it is highly likely that Stellar will also follow its footsteps.
Recent CoinGape articles forecast that XRP price could hit $4 after breaking out from its ongoing consolidation.
- From a conservative standpoint, XLM can gain at least 30% if Ripple can shoot up 100%.
- However, if Stellar has momentum, then it could also double form the current level and hit roughly $0.80.
- In a highly bullish case, XLM price could reach $1.
To conclude, the XLM’s outlook looks bullish with price on track to hit $0.612 after a 30% rally. In some cases, the coin could far surpass the forecasted targets and potentially hit the $1 psychological level.
The post Stellar (XLM) Price Analysis For January 11 appeared first on CoinGape.