Stellar (XLM) is attracting increased investor attention due to its recent strong price growth. Analysis shows similarities with XRP's dynamics.
Technical Analysis and Signals of Bullish Momentum
Recent analysis has shown that XLM decisively broke out of a multi-year downtrend, confirmed by strong trading volume and a parabolic price increase. In a short period, XLM surged over 60%, indicating a change in market momentum. As of the last check, XLM was trading at $0.4655, reaching an intraday high of $0.4769, the highest level in several months. Observations from analysts affirm that XLM’s current structure closely resembles XRP’s trajectory before its recent increase.
Correlation with XRP and Future Targets
Recent analysis indicated that XLM and XRP share a correlation coefficient of approximately 0.91, suggesting their near-unison movement in the market. This has fueled bullish projections for XLM, with some analysts anticipating a move toward $1.05 or even $1.29, assuming current momentum is sustained. Traders also note similarities between XLM's and XRP's charts, linking XLM's potential rise to breaking through the $0.49 to $0.50 levels.
Growth Drivers and Ecosystem Development
The surge in XLM cannot solely be attributed to technical factors. The Stellar Development Foundation is actively fostering partnerships and advancing technology steps. Notably, Stellar is set to support the launch of PayPal’s PYUSD stablecoin, which will strengthen its market position in digital payments and bolster long-term growth prospects. Stellar's focus on financial inclusion and real-world asset tokenization creates strong conditions for broader adoption, especially in emerging markets.
The analysis of XLM's rise supports its potential strength, driven by technical indicators and its relationship with XRP. However, investors should remain cautious, as potential price corrections may occur when certain levels are reached.
