Stellar (XLM) Price Analysis For January 11

Stellar (XLM) has been consolidating since late November 2024, leading to several lower highs and suggesting profit-taking. However, between December 9 and January 11, the price action formed an inverse head-and-shoulders setup. This pattern forecasts that XLM could rally shortly.

Stellar (XLM)’s Bullish Pattern Signals Price Could Shoot 30%

The four-hour chart shows that Stellar set up three distinctive swing lows in the past two months, leading to an inverse head-and-shoulders pattern. This technical setup signals a reversal of the downtrend and forecasts a 31% move to $0.612. The target is obtained by measuring the head’s depth of 31% and adding it to the neckline at $0.466.

Overall, the outlook for XLM looks bullish as it overcame the $0.414 resistance level and flipped it into a support floor. This bullish development foreshadows the setup’s breakout rally.

For now, XLM should climb 10% to retest the neckline. Only overcoming this hurdle will confirm a breakout from the inverse head-and-shoulders setup, triggering the 31% move to $0.612.

With Bitcoin forming a potential bottom around $90K to $91K, the chances that altcoins kickstart a rally next week are high.

Is Bitcon Bottom In? Most likely.

January 9’s swing low ($91,151) could be the bottom. If not, then a sweep of $90,835 with a bullish swing failure pattern could suggest that a bottom is imminent.
https://t.co/H2Spj0mvEM pic.twitter.com/ohZ0zmlIsB

— MAXPAIN (@Mangyek0) January 10, 2025

Therefore, investors need to focus on tokens that are showing strength. Stellar and Ripple are two such cryptocurrencies that could trigger volatile moves. Let’s explore how Ripple’s upcoming breakout could help Stellar’s XLM.

XLM Follows Ripple (XRP)’s Footsteps

Since Stellar (XLM) is a direct competitor to Ripple (XRP), the price action is often similar, ie., if XRP rallies, XLM will follow suit. Considering that Ripple is close to a breakout from a symmetrical triangle, it is highly likely that Stellar will also follow its footsteps.

Recent CoinGape articles forecast that XRP price could hit $4 after breaking out from its ongoing consolidation.

• From a conservative standpoint, XLM can gain at least 30% if Ripple can shoot up 100%.
• However, if Stellar has momentum, then it could also double form the current level and hit roughly $0.80.
• In a highly bullish case, XLM price could reach $1.

To conclude, the XLM’s outlook looks bullish with price on track to hit $0.612 after a 30% rally. In some cases, the coin could far surpass the forecasted targets and potentially hit the $1 psychological level.

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Akash Girimath

Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.