XLM Hits Yearly High Amid Surge, Analyst Provides Bullish Assessment
Stellar Lumens (XLM) experienced a significant price increase, reaching a yearly high of $0.52, following an 87% rally over the last seven days. This price movement closely mirrors gains observed in XRP (XRP), which recently hit a year-to-date high of $3.65. The high correlation between the two assets, reflected in a 100-day correlation index of 0.95, may suggest similarly bullish trends for XLM.
Peter Brandt: XLM Exhibits Strongest Technical Structure
Seasoned trader and analyst Peter Brandt recently identified Stellar Lumens (XLM) as exhibiting the most bullish market structure among significant cryptocurrency assets. Brandt emphasized the necessity for XLM to maintain key levels, tweeting:
“XLM MUST MUST remain above Apr low and MUST MUST close decisively above $1. Until then this chart will remain range bound.”
According to Brandt’s analysis, significant support is currently located near the April low, approximately $0.20, representing a substantial drop from recent highs. A crucial breakthrough above the $1.00 level is necessary for sustained significantly higher prices, presenting a formidable challenge for bulls.
Immediate resistance is observed near the $0.62 and $0.80 price zones, which could trigger selling pressure before any potential breakout towards the former all-time high of $0.93 ($0.93 is the all-time high). For context, analyzing the XLM/BTC pair indicates XLM has historically underperformed this pairing. A decisive move above the 0.000006 BTC threshold could signal a structural break and potentially initiate stronger performance relative to Bitcoin, possibly setting the stage for price discovery in the latter half of 2025.
Bullish Market Indicators for XLM
Active interest in XLM futures has surged, with open interest reaching a record high of $589 million. Funding rates remaining relatively neutral compared to the same period a year ago suggests a balanced market structure, neither overly long nor short, often conducive to significant price movements.
Analysis of the aggregated cumulative volume delta (CVD) suggests accumulation by major players during a period of sideways price correction since March. While spot CVD peaked and open interest surged, XLM’s price traded sideways near $0.30 to $0.20. Now, the CVD has stabilized near neutral levels, aligning with XLM’s historical pattern where strong sustained rallies often occur after a phase of buyer dominance.
Additionally, the XLM/BTC pair showed strong demand during sideways movement, reinforcing the balanced market narrative.
Note: This article is not investment advice. Trading cryptocurrencies involves significant risk.
