Can Stellar Price Hit $1 in December?

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As a seasoned researcher with a knack for deciphering the intricacies of the crypto market, I find myself captivated by the recent surge of Stellar Lumens (XLM). Having closely followed the trajectory of cryptocurrencies since their inception, I must admit that the 450% increase in Stellar price is nothing short of breathtaking.

The value of Stellar, a well-known cryptocurrency initially developed by a former Ripple co-founder, soared by more than 450% as the cryptocurrency market surge gained momentum. On the other hand, XLM appears to be showing signs of fatigue as its climb to $1 encounters some resistance. Despite this, crypto analysts predict that Lumen may still have potential for further growth as the altcoin trend begins.

Stellar Price Analysis: Early Signs Of A Bullish Pennant Showing

The price of Stellar was at $0.55 on Tuesday, November 3, marking a 15% drop from its peak in November. However, it’s worth noting that the coin is exhibiting indications of creating a bullish pennant chart configuration, which is often seen as a positive sign of an ongoing trend. A pennant pattern is recognized by a straight line and an equalized triangle shape.

Typically, this pattern tends to result in a robust upward price surge, and such breakouts are more pronounced when they’re accompanied by high trading volume.

The value of XLM has surpassed both its 50-week and 200-week Exponential Moving Averages (EMA). Furthermore, it continues to be higher than the significant price points at $0.50 and $0.4400, reaching its highest point since November 2021.

Despite a recent dip to 2.7, Stellar’s Market Value to Relative Value (MVRV) still sits well above its lowest point for the year. This metric has yet to reach the high levels it hit in 2021, which were around 6.

If Stellar Lumens surpasses its year-to-date high of $0.6347, this upward trend is likely to be substantiated, indicating the presence of more buyers in the market. These bulls may then aim to drive the price towards its all-time high of $0.80. A break above the resistance at $1 would confirm a further upward movement.

From another perspective, if the value falls below the support level at $0.4402, which is its high from November 2021, it would contradict the bullish outlook. This could increase the likelihood of a correction, often referred to as mean reversion, where an asset decreases in value. If this were to occur, Stellar’s price might decrease to a key support level at $0.20, which was its highest point in July 2023.

XRP To Determine The Next XLM Price move

The potential for Stellar Lumens to reach $1 largely hinges on the forthcoming price movements of Ripple. This is due to the fact that these two cryptocurrencies frequently exhibit similar trends because they are both part of the payments sector. Additionally, Stellar was established by Jed McCaleb, a co-founder of Ripple.

The two coins have experienced an upward trend following Donald Trump’s recent victory and the upcoming modifications at the Securities and Exchange Commission (SEC). Analysts predict that Ripple’s ongoing legal disputes may soon come to a close, paving the way for a potential XRP Exchange-Traded Fund (ETF). Meanwhile, Canary Capital has already submitted an application for a spot XLM ETF, which could potentially be approved in 2025, thereby encouraging more institutional investment.

Consequently, as Ripple’s bullish trend persists, it’s likely that the value of the XLM token may approach or even reach one US dollar.

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2024-12-03 15:58