The Stellar Lumens crypto price continued its strong comeback and is on the verge of a 28% breakout in the coming weeks. XLM jumped to $0.1015, its highest point since September 30th of this year. It has surged by over 35% if buyers push it above the key resistance level at $0.1125.
Stellar Lumens price forms strong technicals
The XLM token price is on the cusp of a bullish breakout, helped by its strong technicals. On the daily chart below, we see that the token formed a strong bottom at $0.0890, where it failed drop several times since September 6. This is a sign that the coin has formed a triple-bottom pattern, which is a popular bullish reversal sign.
Stellar is now hovering near this pattern’s neckline at $0.1040. It has also flipped the important 200-day Exponential Moving Average (EMA) into a support level, which is another bullish sign.
The Relative Strength Index (RSI) and the MACD indicators have pointed upwards. It has moved between the 23.6% and 38.2% Fibonacci Retracement levels. At the same time, oscillators like the Relative Strength Index (RSI) and the MACD have all pointed upwards.
Therefore, a move above the triple-bottom’s neckline of $0.1040 will point to the next rally to the key resistance level at $0.1125, the highest level in July. More gains to the 61.8% retracement point at $0.1297, which is 30% above the current level, will be confirmed if it rises above $0.1125.
Some analysts believe that the coin will actually jump more than that. For example, in an X post, CryptoBanker said the coin will soar to $0.30, which is about a 200% increase from the current level.
Potential catalysts for XLM price
There are a few potential catalysts for the XLM price. First, Stellar lumens will react to macro events like the Federal Reserve interest rate cuts and the Trump election. The Fed slashed rates by 0.25% on Thursday, bringing the year-to-date cuts to 0.75%. Historically, cryptocurrencies like Stellar do well when the Fed is cutting.
Second, Stellar will benefit if Trump implements crypto-friendly policies. For example, there is a likelihood that the Securities and Exchange Commission (SEC) will approve more crypto ETFs in the near term. If this happens, XLM will benefit since there are chances that there will be a Stellar ETF filing.
Third, Stellar could benefit from the ongoing growth of its ecosystem. A good example of this is the Franklin OnChain US Government Money Fund, which has attracted over $435 million in assets under management.
