Renowned trader Peter Brandt shared his views on Stellar (XLM), emphasizing chart patterns and potential prospects for the cryptocurrency.
Chart Analysis: Formation of a Reversal Pattern
In the monthly chart shared by Brandt, a clear potential **inverse head and shoulders pattern** is visible. This classic formation often indicates a long-term trend reversal.
* **Left Shoulder (S)**: Formed in late 2018 to 2019. * **Head (H)**: The deep bottom in early 2020. * **Right Shoulder (S)**: Slowly formed from mid-2022 to late 2023. * **Neckline resistance**: Just under the $0.50 level.
The recent candle shows **a strong breakout attempt**, with XLM currently trading at $0.429, the highest monthly level since early 2022.
Peter Brandt’s Opinion: Critique and Hope for XLM
In typical Peter Brandt fashion, the veteran trader didn’t hold back. He stated: > "Every crypto nerd has his/her/its own pet rock or Beanie Baby. I believe 95%+ of the 11,000 actively traded coins will become near worthless – your pet rock included."
He’s not wrong. According to CoinGecko, over **3.7 million tokens are already dead**, and **more than half** of active ones are down over 90% from their all-time highs. However, he believes that **XLM is one of the few** that could thrive: > "One coin I think could become a rock star is $XLM."
What It Means for XLM?
XLM’s fundamentals have always made it stand out – features such as cross-border transactions, partnerships with Stellar Development Foundation, and real utility make it appealing. However, the cryptocurrency needs to hold above the $0.42–$0.45 level to confirm the bullish reversal. If it drops below $0.30 again, this setup could be delayed or invalidated.
Peter Brandt's optimistic outlook on XLM and the positive signs on the charts provide a basis for discussing the future of this cryptocurrency. The timeframe remains unclear, and traders should be cautious of further price movements.
