Stellar (XLM) is one of these rare altcoins that boasts a long and positive trading history. Created in 2014 and launched a year later, the protocol for payment providers and financial institutions has been at the top of the cryptocurrency rankings for years.
Long-term analysis shows that the Stellar price may now be on the threshold of a new bull market. If the scenario of the previous two cycles plays out, XLM could surge as much as 350% over the next several months.
Stellar Price Enters Bull Market
A long-term, monthly chart of the XLM price gives an insight into the altcoin’s history since its launch in 2015. Unlike many cryptocurrencies launched then, the Stellar price chart offers a bullish outlook.
Most notably, the Stellar price experienced two bull markets reaching similarly high valuations. In early 2018, the XLM price reached an all-time high (ATH) of $0.93. Meanwhile, during the previous bull market, it reached $0.80 in May 2021.
Interestingly, the monthly candles closed in the $0.53 area in both cases, now serving as long-term resistance and the target of the next bull market. If the Stellar price were to rise to this area from its current valuation of $0.12, it would represent a 350% surge.
Another bullish signal is the ascending long-term support line (blue), which has existed since April 2017. So far, the macro lows of the previous two bear markets have validated it as support (blue circles).
Moreover, the Stellar price on the monthly chart has formed a rarely observed long-term hidden bullish divergence. The RSI indicator recorded a lower low in 2022 than the 2020 low (orange line). In contrast, the XLM price formed a higher low over the same period.
Author: Jakub Dziadkowiec
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