The Stellar token (XLM) is signaling a potential 35% price increase, framed within a classic bullish continuation pattern known as an ascending triangle. A significant aspect of this trend is its relationship with the XRP token.
Analyzing the Ascending Triangle of XLM
XLM is consolidating within an ascending triangle, a classic bullish continuation setup. The resistance level near $0.52 has been tested multiple times since July 15, while higher lows indicate increasing buying pressure. A breakout above $0.52 could confirm the pattern and trigger a rally toward $0.63 by August, marking a 35% gain from the current price. Momentum indicators also support the bullish case.
Correlation between XLM and XRP
The bullish outlook for XLM comes after the token surged over 90% in the past month, mirroring a 60% gain in XRP over the same period. Both assets show a strong directional correlation due to their shared founder and similar goals in transaction processing, typically exceeding 0.70, indicating synchronized price action.
Future of XLM and the Cryptocurrency Market
Veteran trader Peter Brandt states that XLM could represent the 'most bullish chart' in the crypto market, provided it decisively closes above the $1 level. Currently, XLM is lagging behind XRP's gains, yet the potential for further growth remains amid the overall prevailing trend and the correlation with XRP.
In conclusion, XLM is an interesting asset to watch given its current development and correlation with XRP. Future price movements will depend on the market and the actions of major players.
