Stellar’s XLM (XLM-USD) may be gearing up for a breakout moment of its own. Long seen as XRP’s (XRP-USD) quieter cousin, the token is flashing one of the “most bullish charts in crypto,” according to seasoned trader Peter Brandt. Now, with XRP soaring past $3.40 and eyeing even higher targets, XLM could be next in line for a powerful rally that some analysts say could push it beyond $0.60 and potentially toward the coveted $1 mark.
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XLM Breaks Resistance, Targets 35% Surge
XLM is testing a key resistance zone at $0.52. This level caps the top of an ascending triangle, a bullish technical pattern built on rising lows and steady pressure from buyers. If XLM can break out convincingly, chart watchers say it opens the door to a 35% rally toward $0.63 in the short term.
That breakout would represent more than just a short-lived pump. It could mark the beginning of a catch-up rally. Since November, XLM has climbed 425%, while XRP has surged over 590%. Historically, when XRP moves first, Stellar often follows, driven by overlapping narratives in cross-border payments and investor behavior. During past bull markets, the correlation coefficient between the two tokens has regularly exceeded 0.70, sometimes hitting as high as 0.95.
In July 2023, for example, a favorable U.S. court ruling in Ripple’s legal case ignited a 60% XRP rally. XLM followed suit within days. Traders are betting that history might repeat.
XLM Builds Momentum above Key Averages
Beyond the short-term technicals, Brandt’s longer view suggests that XLM is forming a rare macro pattern with massive upside, but only if it can clear the psychologically critical $1 barrier, a level it’s never held with conviction. “This may be the most bullish chart in crypto right now,” Brandt wrote, though he noted that confirmation still depends on sustained momentum.
Momentum indicators are cooperating so far. The token is holding above its 20-, 50-, and 200-period exponential moving averages on the four-hour chart. Meanwhile, the Relative Strength Index remains below overbought levels, signaling there could still be gas left in the tank.
At the time of writing, XLM is sitting at $0.4746.
