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Stellar price has erased some of the gains made last month. This decline has mirrored that of Ripple, which has also moved into a short-term retracement as traders take profits. So, can the XLM price jump to $1 before XRP jumps to an all-time high?
Stellar Price Analysis: Technicals Point To a Strong Rebound
The XLM price has dropped by about 32% from its highest level this year, mirroring that of most altcoins. Still, there are rising odds that the coin will bounce back in the next few days.
The daily chart shows that the Stellar price has found support at the 50% Fibonacci Retracement level. It has also remained above the 50-day moving average, a sign that bulls are still in control.
Stellar has formed a hammer candlestick pattern, which is characterized by a small body and a long lower shadow. In most periods, this is one of the most bullish candlestick patterns in the market.
There are also signs that the recent Stellar price retreat is part of the formation of the correction wave of Elliot Wave. This pattern usually ends with a strong bullish breakout, which will likely happen.
So, will the XLM price jump to $1? Odds are that the coin will ultimately jump to $1 in this bullish cycle. For this to happen, Stellar price needs to first rebound and move to the year-to-date high of $0.6385. A move above that point will send a signal that there are still more buyers available in the market, keen to push it to $1.
A move to $1 implies a 130% increase from the current level. This is achievable since the coin rallied by almost 500% in November.
Stellar Price ChartA drop below the support at $0.3642, the 50% retracement point, will invalidate the bullish view. It will be a confirmation that the coin has moved to the markdown phase of the Wyckoff Method.
XRP Rally to Fuel XLM Price
A likely catalyst for the XLM price will be the performance of Ripple price. Historically, these two cryptocurrencies have a close correlation because they are both in the cross-border payments industry. Jed McCaleb, Stellar’s founder, is one of Ripple’s co-founders.
Analysts believe that the Ripple price, which crossed the key resistance at $1 recently, could jump to as high as 5 in this cycle and $18 in the long term. A key catalyst for this rally will be the upcoming RLUSD launch.
If these forecasts are accurate, then there are chances that Ripple will jump, and then XLM will do much better. For example, XLM price outperformed Ripple during their recent bull run.
The post Can Stellar Price Hit $1 before XRP Tags ATH? appeared first on CoinGape.
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