Stellar (XLM) shows ‘high readiness for a bull run’ 
Cryptocurrency Jan 16, 2025 Share
Stellar Lumens (XLM) is showing strong potential for a bullish move as it transitions out of a prolonged accumulation phase.
Despite challenges in establishing a definitive buying zone, technical indicators suggest the cryptocurrency is nearing the end of its correction phase, with momentum shifting in favor of the bulls.
Technical analysis points to bullish potential
In a recent analysis, crypto analyst RLinda highlighted that the XLM/USDT pair has been gradually breaking intermediate resistance levels while consistently updating highs.
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XLM price analysis chart. Source: RLinda / TradingView
The key technical hurdle lies in breaking out of the medium-term consolidation and overcoming the resistance of the descending channel visible on the four-hour chart (H4).
“The coin, technically, is ending its correction. The price is gradually updating highs and breaking intermediate resistance levels, but the key factor is the exit from the medium-term consolidation” – the analyst noted.
Currently trading at $0.477, XLM is holding above its critical support zone, but sustaining this level is crucial to maintaining bullish momentum.
The $0.46 and $0.452 levels serve as a crucial foundation for further gains. A breach of this support could lead to a short-term pullback, while a successful breach would likely generate the momentum needed for medium-term growth, positioning XLM for a potential breakout.
Key levels to watch
Traders should keep a close eye on the immediate resistance at $0.486. A breakout above this level could trigger a significant rally to $0.61, solidifying the bullish outlook.
On the downside, key support zones are between $0.4605 and $0.4522. Maintaining these levels is crucial for bulls to keep momentum intact.
Consolidation above $0.46 would signal strong buying activity, while a false breakdown below support, followed by a quick recovery, could confirm aggressive bullish sentiment.
Optimistic projections for Stellar
Adding to the optimism, crypto analyst Javon Marks highlighted that XLM is regaining momentum, showing signs of major strength.
XLM price analysis chart.Source: Javon Marks/X
Marks identifies a breakout target of $0.681, representing a potential 44% price surge from the current level. If XLM surpasses this level, the rally could extend toward $1.2918, reinforcing the bullish narrative.
AI models, including ChatGPT, project even higher levels, suggesting that under favorable conditions, XLM could reach $1.75 to $2 by late 2025, supported by strong market fundamentals.
Key market catalysts
Stellar is riding the wave of broader market optimism fueled by Bitcoin’s (BTC) rally, which has boosted altcoins across the board.
XLM’s performance remains closely tied to Ripple’s XRP, with both tokens surging amid speculation of potential crypto-friendly policies under the Trump administration.
Stellar’s partnerships with MoneyGram, Circle, and central banks further strengthen its growing role in cross-border payments and blockchain infrastructure, solidifying its position as a key player in the evolving digital finance landscape.
Featured image via Shutterstock