Stellar (XLM) has grown by almost 150% during the week against a large bull trend. Positive fundamental background, including partnership news with one of the oldest banks in Europe, also fueled the rally.
Apparently, Stellar (XLM) entered the line of a long-term ascending trend. The dynamics will be survived for 2021 and will lead the coin to record maxima.
What happens to XLM
Stellar now takes the ninth line in the cryptocurrency rating with a market capitalization of $ 6.4 billion. This week, the coin became a growth leader, showing an increase of almost 150%.Join our telegram channel to be aware of the main trends of the crypton.
Stellar is managed by a non-commercial organization called "Stellar Foundation" (Stellar Foundation). It performs the intermediary function between fiat and digital currencies in transactions of any size. The project was launched in 2015, and since the STELLAR blockchain has been processed more than 450 million transactions.
Stellar also interacts successfully with traditional financial sector players. In December 2020, Bankhaus Von Der Heydt (BVDH), one of the oldest banks in Europe, together with Bitbond launched the STELLAR Blockchain base.
CEO BitBond noted:
China is already testing the digital yuan in real conditions, European banks will ultimately go through this path. In this case, Stellar can be in the forefront of revolutionary innovations. Editorial BEINCRYPTO has previously reported that Ukraine plans to create a digital version of the hryvnia on the STELLAR blockchain
Long-term levels
For most of 2019 and 2020, XLM technical perspectives seemed gloomy. After a bear breakthrough in October 2018, XLM consolidated below the $ 0.20 region. Veliable price movements without significant volatility constrained the coin in the narrow range.
XLM formed the bottom of March 13, 2020 at $ 0.024, after which the sustainable recovery began. Growth rates accelerated in November, and this week XLM developed space speed.
At the time of writing, the XLM article is adjusted after testing $ 0.36 (0.382 Fibonacci correction relative to a historic maximum of $ 0.91).
This is important resistance, because on the way to record altitudes, the coin must first overcome the levels of fibonacci, including 0.382, 0.5, 0.618 and 0.786.
Level 0.5 is especially important, as it coincides with the area of the horizontal resistance of $ 0.47. Thus, while XLM holds below this mark, the long-term trend cannot be considered bull.
Meanwhile, technical indicators on weekly schedule are still deployed up, despite the strong overbought of the coin. Stochastic (highlighted in green) forms a bullish cross. If the process is completed, we will get another proof of further growth.
Forecast for 2021
The nature of the rally from the March minimum indicates that, most likely, this is a wave 1 (shown white below) of the Pytyatol Bull Pulse.
Given the rollback from $ 0.37 and the potential vertex on BTC, it can be assumed that the XLM is approaching the upper point of the first wave. Thus, the correction will soon begin, after which the coin will resume growth.
Thus, after the completion of the second wave, the third wave will begin, which will lead the XLM above $ 0.47, finally confirming the long-term bullish trend.
The potential target of the third wave is in the range of $ 0.88. This is 2.61 Fibonacci projections relative to the first wave. Target levels of growth: $ 1,20 and $ 1.53. This is 3.61 and 4.61 Fibonacci projections relative to the same wave, respectively.
However, the coin is unlikely to be able to finish the bullish cycle in 2021. It's all about the duration of the first wave, which has been delayed for seven months.
If the formation of the second and third wave will leave as much time, then the third wave will be completed in approximately 2021, and the fourth and fifth wave will go for 2022.
conclusions
XLM began growth after reaching a minimum in March 2020. The new trend will ultimately lead a coin to historical maxima.
We expect XLM above the resistance area of $ 0.47 in the second half of 2021 and tested it as support. A new historical maximum will be achieved in 2022.
Here you can read the previous technical analysis on XLM.
- Disclaimer: Kryptovaya trading is associated with a high level of risk and is not suitable for all investors. The view presented in this article does not reflect the Beincrypto position.
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