Stellar (XLM) Rally and Future Prospects

Stellar (XLM) enjoyed a strong rally in late 2024, mirroring another popular cryptocurrency: XRP.

XLM showcased significant volatility and directional movements, soaring 522.22% from approximately $0.09 just ahead of the U.S. presidential election to highs of about $0.56 on December 1.

Recently, the token has struggled to decisively breach $0.35, with a press time price of $0.34.

On February 21, on-chain expert Ali Martinez shared a technical analysis (TA) on Twitter, suggesting that the cryptocurrency might soon experience a resurgence.

Reasons for Imminent Rally

Martinez explained that TD Sequential, a tool developed by analyst Tom DeMark, issued a buy signal on XLM’s hourly chart. While there were no predictions on how high XLM might rise, the support and resistance levels indicated a halt near $0.351, with a strong likelihood of staying below $0.36.

Furthermore, XLM’s correlation with XRP supports the bullish case, as XRP had its rally indicated the same day, surging from $0.65 to $2.70 within hours.

Long-term Outlook for XLM

Stellar’s long-term prospects look brighter, especially with Ripple Labs’ token gaining traction through regulatory acknowledgments – particularly an ETF filing victory and Brazil’s approval of the world’s first spot XRP ETF.

There have also been specific developments for Stellar that may vary in investor response. On February 19, Denelle Dixon, CEO of the Stellar Development Foundation, announced on Twitter that the network is ‘feature complete’ for the next decade after about ten years of development.

Dixon emphasized that ‘feature complete’ does not equate to an end of innovation, mentioning a roadmap focused on scaling and achieving $1.5 billion in total value locked (TVL). The Foundation aims to declare victory only when developers recognize it as the top DeFi platform.

> The Stellar Development Foundation’s 2025 Roadmap: ‘Feature complete’
> After 10 years of building, we can confidently say that this network is “feature complete” for the next decade…
> — Denelle Dixon (@DenelleDixon) February 20, 2025

While these developments sound promising, caution remains vital as XLM and XRP exhibit sensitivity to broader cryptocurrency market movements, which have been influenced by recent external shocks.

Featured image via Shutterstock