XLM Price Prediction: Stellar Surges 26% After Bullish Breakout

XLM Price Prediction After 26% Surge and Protocol Upgrade

Stellar (XLM) experienced a massive 26% price surge within 24 hours due to thrilling upgrades, high demand from large investors, and an improvement in the entire altcoin market. Will the XLM price continue its rally? Let discuss the Protocol 23 Upgrade and price prediction in details

Protocol 23 Upgrade Sparks Investor Excitement

The primary cause of this rally is the Protocol 23 upgrade, which has been recently approved by Stellar validators on July 11. 

This upgrade will be live from August 14 and will introduce smart contracts and improved scalability so that the network can process more transactions seamlessly. This announcement has already awakened investor interest before its release.

Franklin Templeton Adds Big Value to Stellar Network

One more significant reason for the rise of this altcoin is that Franklin Templeton has decided to employ Stellar to tokenize U.S. Treasury money. The value of such tokenized treasuries is now over $445 million, which indicates that institutions have faith in Stellar for real-world financial use. 

Such endorsement further highlighted XLM and prompted buyers to invest. As of writing the coin is trading at $0.3805 with an increase of 23% in the last 24 hours. While the trading volume has spiked up by  277% reaching $2.28 Billion.

Source: CoinMarketCap

Technical Breakout Confirms Bullish Momentum

Technically, XLM breached a crucial resistance level at $0.387, which is the 61.8% Fibonacci retracement level. The RSI (Relative Strength Index) is hovering above 80, indicating high bullish strength as well as precautions. This technical break out validates that traders are optimistic about the price rising further.

Altcoin Season Adds Fuel to the Rally

XLM also benefitted from a broader trend on the overall crypto market. Following Bitcoin's new all-time high of $118,760 on July 11, investors took profits and began investing in altcoins such as XLM, XRP, and ADA, which all rose 10–25%. 

Ethereum's value relative to Bitcoin also rose more than 8% this week and is ready to close above the $3000 level, which suggests a move toward other coins.

Fear & Greed Index: 69 (Greed) indicating greed, as well as altcoin trading volumes increasing by 105% in a week, the market is very obviously in a risk-on environment, well-suited to a robust XLM rally.

XLM Price Prediction

Source: EGRAG CRYPTO

According to EGRAG Crypto, Stellar Lumens seems to be exhibiting a strong bullish pattern. XLM's price is sitting at about $0.373 currently, and has just confirmed a break above a long-term trendline designated as a "Strong Signal Confirmation." In the past, this type of breakout has resulted in huge rallies.

The chart is pointing out a repeated "cup and handle" formation, a bullish pattern that has already triggered more than 900% price jumps in the past. With this formation repeated, most analysts think altcoin can be positioned for a similar move.

Taking a glance at the targets that are anticipated, the initial strong resistance area is $0.62 and $0.93. If altcoin breaks through that level, it may target higher levels. The next target is $1.27, then the more ambitious target of $2.13. This $2.13 level is an incredible 1,100% increase over the current price. If the entire crypto market goes into a full bull run and interest in Stellar's blockchain solutions increases, Stellar Lumens could even surge to the extreme levels of $4.05 or even $8.36, as indicated by the top section of the long-term price channel.

Conclusion 

Simply put, if XLM replicates its previous performance, your investment may increase almost 10 times in the near future. Nevertheless, as with any crypto asset, all of these projections are largely based on market sentiment, world conditions, and ongoing evolution within the Stellar environment. 

Always do your own research, before investing in the crypto market.