Stellar Crypto Price May Jump 57% In Future: Here’s Why?

Key Insights:

• Stellar crypto price has formed a highly bullish double-bottom pattern.
• Its stablecoin supply, transactions, and holders have jumped in the past 30 days.
• Stellar has become the fourth biggest chain in the RWA industry.

Stellar crypto price rebounded this month, soaring to its highest level since May 29. This trajectory could continue in the coming days, helped by its top technicals and fundamental metrics.

Stellar price was trading at $0.2850 on July 9, up by over 30% from its lowest in June. This rebound happened in a high-volume environment, with the 24-hour figure jumping by 50% to $380 Million.

Stellar Crypto Price Technicals Suggest More Gains Ahead

Technicals suggest the Stellar crypto price has more room to go in the coming weeks. The daily timeframe reveals that XLM formed the highly popular bullish reversal pattern, a double bottom.

A double-bottom comprises two key support levels, which, in this case, are at $0.2175. It also has a neckline, which stood at $0.33.

The biggest risk that Stellar price faced was that this pattern was either a descending triangle or an inverse cup-and-handle. This descending triangle had a trendline that connected the highest level since February.

Stellar crypto price moved above the trendline, confirming a double bottom. It also moved above the 50-day and 200-day exponential averages. This indicated that bulls are gaining momentum.

Further, the Average Directional Index (ADX) has moved from last week’s low of 14 to 24 today. A figure of 20 and above usually indicates that the trend is strengthening.

The price target in a double-bottom pattern is first established by measuring its depth. This case demonstrates the depth by subtracting the double bottom at $0.2175 from the neckline at $0.3330. This equals $0.1156.

After this, one adds the result to the neckline, giving the target at $0.4487, 57% above the current level. A drop below the double-bottom point at $0.2175 will invalidate the bullish XLM price forecast.

Such a move will invalidate the double-bottom pattern and signal that it could have been an inverse cup-and-handle.

XLM Open Interest is Surging

A key potential catalyst for the Stellar price is the strong rally in futures open interest. That is a sign that demand in the highly active futures market is surging, which could trigger more gains.

Stellar’s open interest surged to $243 Million on July 9, the highest figure since January. Notably, this increase was not a one-day event.

Instead, it has been happening gradually since June 23, when it bottomed at $135 million. Most open interest is in exchanges like Binance, OKX, Bybit, and Bitget.

In this regard, the important metric known as the funding rate has remained positive in the past few days. A positive funding rate shows traders are paying to hold long positions. It suggests they expect the Stellar crypto price to go up soon.

Stellar Stablecoin and RWA Growth Continues

The bullish Stellar price forecast is also supported by other fundamentals, such as its growth in the stablecoin industry. For example, data shows that the supply has jumped by 2.9% to $81 Billion. On the other hand, the number of addresses has soared by nearly 10% to 10 million

Stellar handled over 68.8 million transactions in the last 30 days. This makes Stellar one of the biggest stablecoin processors in the industry, a trend that may continue in the coming months.

Stellar is now the fourth-largest blockchain in the RWA tokenization space. It holds over $440 Million in tokenized assets. Most of these come from its partnership with Franklin Templeton. Franklin Templeton manages more than $1.5 Trillion in assets.

Stellar crypto price could be on the verge of a strong bullish breakout in the coming weeks. Its robust technicals and fundamentals would aid this. It has formed a double bottom pattern, while its utility in the crypto industry is on a strong trajectory.

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.