Stellar (XLM) Mimics XRP's Pre-Rally Chart Pattern, Is a Bull Run Imminent?

Stellar (XLM) enjoyed a strong rally in late 2024 in many ways, mirroring the surge of another popular cryptocurrency: XRP.

Stellar (XLM) cryptocurrency enjoyed a strong rally in late 2024, largely driven by a surge in demand for cross-border payments tokens. The token’s price soared 522.22% from approximately $0.09 just ahead of the U.S. presidential election to December 1 highs at about $0.56.

In recent times, however, the token has been struggling to decisively breach $0.35 – despite coming close with its press time price of $0.34.

On February 21, the on-chain expert Ali Martinez shared a technical analysis (TA) of the cross-border payments token in an X post, indicating that the cryptocurrency might soon see its rally reignited.

Why XLM is facing an imminent rally

Martinez highlighted that TD Sequential, a tool developed by the famous analyst Tom DeMark that utilizes an asset’s historical performance to determine if a current trend would be maintained or reversed, has issued a buy signal on XLM’s hourly chart.

Though the on-chain expert and cryptocurrency trader provided no insights into how high the token might go, XLM’s February 21 support and resistance levels indicate that it is likely to halt near $0.351 and almost certain to remain below $0.36.

Finally, XLM’s relative correlation with XRP appears, at press time, to confirm the bull case for the cryptocurrency. Specifically, the same technical analysis tool signaled an XRP rally earlier in the day and, indeed, the token soared from $0.65 to $2.70 within hours.

Is XLM headed for a long-term rally?

Following the same logic, Stellar’s long-term prospects also appear bright as Ripple Labs’ token appears to be enjoying important external tailwinds.

The SEC acknowledged an exchange-traded fund (ETF) filing – a small but important victory – and Brazil approved the world’s first spot XRP ETF.

There have also been more Stellar-specific developments that, though bullish at face value, might face varying investor reactions.

Late on February 19, Denelle Dixon, the CEO and Executive Director of the Stellar Development Foundation, made an X post revealing the network is ‘feature complete’ for the next decade after about ten years of work.

Stellar also promised that ‘feature complete’ does not mean an end to innovation, and the accompanying roadmap – focused on scaling and achieving $1.5 billion in total value locked (TVL) – stated the Foundation would declare victory only when more developers see it as the top DeFi platform.