- According to a renowned crypto analyst, XLM could hit $2.10 or beyond since the current consolidation period appears longer than the previous cycle.
- He also disclosed that the XLM bottom is near, and the asset could start its rally at a point when Bitcoin is declining or about to start its bull run.
Stellar Lumens (XLM) has been trading sideways in the past several months after hitting its yearly low of $0.075. However, bulls have in the past few days shown a strong commitment to dominate the market as they marginally “drag the price up” by 1% in the last 24 hours. At press time, XLM was trading at $0.09.
Subjecting the asset to an extensive technical analysis, renowned crypto analyst Alan Santana has disclosed that XLM is almost nearing its bottom. Speaking to his 4.5k followers, Santana explained that the asset’s all-time low was recorded in June. However, most of the altcoins proceeded to crash in early August. Within that period, XLM was steadily moving up the price curve, posting a “green session in the 5-August week.”
According to Santana, this situation provides a huge hint that the XLM/BTC pair could likely stage a significant bounce back once the Bitcoin price declines or begins its rally early.
The fact that the pair bottomed before the rest of the market and didn’t produce a new low in August can be an early signal indicating that the bottom is in. Also, the fact that it went green on that date can tell us that this pair is likely to grow when Bitcoin drops or starts its bullish wave early in the least.
How Far XLM Could Go
In a separate post, Santana pointed out that XLM had a long accumulation period of more than 700 days in 2019/2020. A year after this, the asset staged a massive bull run. Similarly, the consolidation period for this phase has reached more than 800 days with the analyst estimating that it could even hit 900 days. Coincidentally, the monetary policies within the previous cycle and the current one are almost the same as the Federal Reserve pushes for an interest rate cut. According to Santana, this, coupled with the longer accumulation period could breed a stronger bullish wave.
Supporting his thesis with provable points, the analyst outlined eight reasons why XLM could go higher.
- The consolidation phase is longer.
- The market is stronger.
- The market is older and more mature.
- Big players are now also part of the “crew”.
- Crypto is not the same now as it was four years ago.
- In the past, crypto was seen as something bad, but it is now seen as an innovation that could save the world.
- The ecosystem is higher now, and participants continue to learn, grow, and evolve.
- Money is infinite and humans control the world.
Specifically on how far XLM could go, the analyst admitted that this is hard to guess since the XLM/BTC pair has been on an extensive downtrend. Regardless, he believes that XLM could reach $2.1 or beyond in 2025.
The bottom line is that XLMBTC is now bullish and can be accumulated in anticipation of maximum growth. The way the chart is looking now opens the doors for the biggest bullish wave ever for this pair, it will be interesting to see how it develops…Since this is potentially the first uptrend, we don’t know if it will be one strong burst up or a long drawn-out phase of higher highs and higher lows.
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