Stellar Price Forecast: Chart Pattern Points to a Breakout to $1

Highlights:

• Stellar currently trading in a narrow range as volumes thin out
• An increase in buying volumes could trigger price rally
• Confluence of positive news around Stellar is key to this breakout happening

Stellar (XLM) is kindly moving in lockstep with XRP, making it one of the top gainers this week. In the past week, when XRP gained by 69%, XLM outperformed it by 111.49%. Stellar is also recording the same momentum intra-day. At the time of writing, XLM was up 18.21% to trade at $0.2834. At the same time, trading volumes were on the rise, up 31.80% to hit a high of $2.21 billion.

Technical Analysis – Symmetrical Triangle Points to Major Breakout

Looking at the charts, Stellar (XLM) is trading in a breakout, off a symmetrical trading pattern.

This is an indicator of a major price rally, one that could easily see Stellar rally by another 50 -100%. Such a rally could see XLM hit $1 in the short term. Multiple factors could show that Stellar XLM continues the impressive run it has had in the past week.

Stellar Benefiting From XRP Momentum

One of them is the fact that it serves the same purpose as XRP in the cross-border payments market. This explains why investors are increasingly bidding up both Stellar and XRP. That’s because of the anticipation of more favourable regulations from the Trump administration that could drive up the adoption of Stellar and XRP in the cross-border payments space.

Stellar anchors are quietly revolutionizing global finance by connecting traditional banking rails around the world. #BetterOnStellar: https://t.co/y6KnFmFYe6 pic.twitter.com/NzSpTQQLvJ

— Stellar (@StellarOrg) November 21, 2024

Stellar is also given a boost by being more decentralized, unlike XRP. This makes it less susceptible to regulatory issues anywhere in the world, further adding to its potential for adoption.

Possible Partnership Between Stellar and Cardano Sparks Excitement

Besides the strong price correlation between Stellar (XLM) and Ripple (XRP) in the cross-border payments space, there is also big news about Stellar and Cardano. The latest news hitting the market is that Stellar could soon enter into a partnership with Cardano.

This has been hinted to by Cardano founder Charles Hoskinson, who hinted that two cryptocurrency projects were in constant communication and that a partnership could be in the offing. This is a big deal as the two projects could leverage each other’s strengths, and in the process deepen the intrinsic value of each project. The FOMO building up around this partnership could see XLM rally to new highs in the short term.

Long-Short Ratio Points to Rising Bullish Sentiment

The combination of a potential collaboration with Cardano and the XLM’s trading in the direction of XRP is also reflected in key technical indicators in the short term. For instance, the XLM long-short ratio is currently at 0.9771.

This is an indicator that bulls are firmly in control and that bullish sentiment is on the rise. Such indicators give confidence to those looking to enter the market to buy into Stellar. As such, there is a chance that the price could be headed higher.

Robinhood Crypto now supports $XLM transfers.

Withdraw and Deposit #XLM with a 1% deposit bonus for a limited time.

Terms apply. Download the app: https://t.co/sb4gDoO6Ls#RobinhoodOnchain pic.twitter.com/sONd3LIhuY

— Robinhood Crypto EU (@RobinhoodCrypto) October 23, 2024

Meridian Event Highlights the Growing Activity Around Stellar

The recent Meridian event has also opened up a lot of excitement around XLM. That’s because it brought to the spotlight the many positive things happening within the Stellar ecosystem. Among the projects that were showcased at the event include RampMeDaddy, whose team showed a Telegram-based global payment system.

This is a big deal because the RampMeDaddy is part of the Stellar Kickstart program. Such projects coupled with the potential collaboration with Cardano could keep the buying volumes for Stellar high going into the foreseeable future.