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- Based on previous bull cycle performance, the price of Stellar might rise by 2160%.
- XLM price surged over 8% in the past seven days, replicating strength on the charts.
According to crypto analyst JAVON MARKS, Stellar (XLM) is on the verge of a massive breakout rally. The analyst predicted that the Stellar price could move toward the $11.1+ levels if it repeats the past bull cycle.
At press time, the XLM price was trading at $0.4611, witnessing a rise of over 1.20% in the past 24 hours. Its market cap surged to $14.05 Billion, and the trading volume lifted over 19.25%. This technical analysis seeks to understand why the Stellar price has surged.
Stellar Price Targets $11.1+ Based on Bullish Fibonacci Tool
Stellar’s price could rise by providing an account of the asset’s performance during previous bull cycles and Fibonacci extension levels. During optimistic periods, analysts predict that the XLM crypto would rise enormously. It is a capability the historic asset has demonstrated in the past.
From this chart, we can also apply the Fibonacci retracement tool to identify the key support and resistance levels. This may be indicative of a potential further extension to $2.12, $8.39, and an arguably more promising $11.1+, around a 2160% surge in the short term.
The Fibonacci chart revealed that the Stellar price was out of the long consolidation it often exhibits before a major surge.
The $0.577 level has emerged as a major resistance, which would offer further impetus if rebuffed. According to analysts, these higher targets would mean surpassing this threshold.
Total Value Locked (TVL) Sees Rapid Surge: A Closer Look
Stellar has experienced an impressive surge in Total Value Locked (TVL). The token recorded over 28% growth in the past seven days, according to DeFiLlama.
On the 17th of January, XLM’ TVL hit $64.7 Million, the highest level in history. However, at the time of writing, TVL has settled around $62.53 Million. This significant growth showcased a massive investor interest and demand for the ecosystem.
Over the past 24 hours, the daily active addresses surged over 1.90% to 47.2k. It highlighted the growing interest in the network.
Stellar Price Prediction: Is a Sharp Rally Incoming?
XLM has mirrored the positive on-chain metrics with substantial price gains over the weekend. It has formed a cup and handle pattern and registered a breakout this week. With a significant rise of over 8%, the Stellar price climbed above the key EMAs and maintained a strong footing.
The Relative Strength Index (RSI) of 55 signaled that XLM crypto has maintained its upward momentum. It has further room for growth ahead. Moreover, the Chaikin Money Flow (CMF) indicator reading of 0.11 conveyed increased capital inflows into the market.
In the last five days, massive outflows of over $32.20 Million. This substantial outflow refers to the withdrawal of assets from exchange to wallet addresses for holding. Typically, such outflow indicates a potential buying opportunity, hinting at possible upward movement in the short term.
The immediate support zones for the Stellar price were $0.4500 and $0.4320. At the same time, the resistance zones were $0.4800 and $0.5000.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
