An analysis of Stellar Lumens (XLM) indicates promising asset growth based on Egrag Crypto's technical analysis that highlights key price levels and institutional support.
Long-Term Analysis: The Cup and Handle Formation
Egrag Crypto presented a long-term chart based on the 'cup and handle' formation, which may signal a strong bullish reversal. This structure spans nearly a decade, with the 'cup' forming from 2018 to 2023, while the 'handle' indicates the final stage before a potential breakout.
Market Dynamics: XLM Price Surge
Over the past week, XLM has surged by more than 25%, leading to a breakout above the $0.37 resistance level. This rise was also supported by a general increase in the cryptocurrency market, particularly due to the rise of Bitcoin. $0.45 is expected to be the next technical target.
Strengthening Fundamentals: Institutional Adoption and Soroban Update
Egrag's optimistic forecast is also coinciding with positive developments in the Stellar ecosystem. For instance, Franklin Templeton tokenized over $445 million in U.S. Treasuries, marking one of the largest real-world asset integrations in crypto. Additionally, the upcoming Protocol 23 upgrade, which will introduce Soroban, the smart contracts platform, promises to significantly expand Stellar's capabilities.
The analysis of XLM indicates a potential breakout supported by both technical and fundamental factors. Given the current conditions and increased interest from institutional investors, Stellar could reach new heights.
