- Stellar’s (XLM) resilience during the August market decline signals potential for a bullish breakout soon.
- The XLM inverse relationship with Bitcoin suggests it could rise even during Bitcoin’s downturns.
- Chart patterns indicate a potential long-term bullish trend, attracting investor interest.
Stellar (XLM) is looking to break out of its consolidation pattern towards the upside. In a recent X post, Santana noted that Stellar could be preparing for a major bounce off the bottom after reaching it. The technical analysis of XLMBTC that compares the prices of Stellar with Bitcoin has pointed out the following signs of future upward trend.
Stellar has hit its all-time low in early June while the rest of the cryptocurrency market suffered a major decline in August. Similar to other digital assets which faced further depreciation in this period, Stellar managed to hold its ground, and even undergo a green session in the week of August 5.
Stellar’s Inverse Potential
This difference with the broader market is a pretty good indication that Stellar is already near the bottom. This means that while it did not establish a new low in August it shows some strength and it could be preparing for a bullish move.
Stellar’s reaction to the tough times for Bitcoin may be a good sign for future expansion. In August, Bitcoin encountered a price plunge while Stellar Lumens experienced the opposite, marking the later as capable of still rising even in the presence of Bitcoin’s dips. This inverse relationship may set XLM for its largest bullish rally yet as the cryptocurrency market oscillates.
Potential Bullish Trend
However, Santana pointed out that it is still very much unclear as to how the growth will proceed. XLM has been in a long term bear trend and this could be the first major Bull trend for XLM. There are two main scenarios for how this growth could play out: a steep, short move up or a more gradual rise that has higher and lower highs within the pattern. Thus, both scenarios imply development, but the rate and the volume of the increase cannot be forecasted accurately.
Source: Chart by Alan Santana
Whether the uptrend is fast or slow, it seems that XLM has all the prospects for further growth. The cryptocurrency is now in a space which points to accumulation, and any investors who may be keen to buy in with the view of capitalising on its next run could be in a good position to do so. XLM’s performance in the coming weeks will be of particular interest in light of the market sentiment changes and continuing volatility of the cryptocurrency market.
As these buy indications are already in the picture, the future actions of Stellar can define if it will be one of the top-performing cryptocurrencies. The investors should pay close attention to the charts as this situation develops.
