Stellar (XLM) has staged a powerful comeback in recent weeks, with analysts pointing to a potential breakout that could see the token double in value. Technical patterns and growing investor interest suggest that XLM could soon rally by more than 100%. But what exactly is fueling this upward momentum?
XLM price prediction strengthened by bullish chart patterns
Stellar’s price has seen a sharp rise since its April low, climbing to $0.32—its highest point since early March. That represents a 54% increase from its bottom near $0.20.
Technical indicators are painting a bullish picture. On the daily chart, XLM has formed a falling wedge, a well-known reversal pattern that often precedes upward breakouts. At the same time, an inverse head and shoulders pattern has taken shape, signaling a potential shift in trend.
The token has now broken above the $0.2910 level, which corresponds to the 61.8% Fibonacci retracement, and has moved above the 50-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) is nearing overbought territory, while the Average Directional Index (ADX) sits above 25—signaling a strengthening trend.
If this trend holds, the next target lies around $0.6415, representing a potential gain of 105% from current levels. However, if XLM falls below the key support at $0.20, this bullish outlook could be invalidated.
Rising ecosystem and ETF speculation drive optimism
Fundamental developments are also playing a crucial role in the XLM price prediction. Speculation is mounting that the U.S. Securities and Exchange Commission (SEC) could approve a spot XLM ETF, which would open the doors to institutional investment—just as seen with Bitcoin and Ethereum in the past.
Stellar’s ecosystem is also expanding rapidly. The network’s stablecoin environment now holds over $353 million in total value and continues to grow. This supports Stellar’s long-term vision to serve as a global platform for peer-to-peer payments and cross-border transfers.
On-chain activity is increasing as well. The number of active addresses has grown by 5% to over 142,000, while total user activity surpassed 73.5 million—an increase of 2% over the past month. Additionally, network fees have jumped by 60%, indicating a spike in transaction volume and broader adoption.
XLM gains support from Bitcoin market sentiment
XLM also appears to be riding the broader wave of bullish momentum across the crypto market. Analysts predict that Bitcoin could reach between $200,000 and $1 million in the coming years. Such a rally would likely lift altcoins like Stellar in its wake.
Often referred to as the “cousin” of XRP, Stellar is capitalizing on its similarities while XRP continues to deal with legal battles. With growing attention from both retail and institutional investors, Stellar could be on the verge of a breakout moment.
Conclusion
Technical indicators, ecosystem growth, and ETF speculation are aligning in favor of Stellar. The latest XLM price prediction suggests a potential rally toward $0.6415, a 105% gain from current levels. As long as support holds above $0.20, Stellar could emerge as a key winner in the ongoing bull market.
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