Can Stellar price reach $1 in December?

Stellar price, a popular cryptocurrency launched by a Ripple co-founder, rose over 450% as the crypto bull market accelerated. However, XLM is now showing signs of exhaustion as its rise to $1 stalls. Nevertheless, crypto analysts believe that Lumen still has room for improvement as the altcoin season begins.

Excellent Price Analysis: Early Signs of a Bullish Pennant Indicator

Stellar price traded at $0.55 on Tuesday, November 3, down 15% from its November peak. On the positive side, the coin is showing signs of forming a bullish pennant chart pattern, which is a popular sign of continuation. A pennant is characterized by a vertical line and a symmetrical triangular pattern.

On most time frames, this pattern often results in a strong upward breakout, especially when supported by high volume.

XLM price has also moved above the 50-week and 200-week Exponential Moving Averages (EMA). It also remains above the key psychological level at $0.50 and the resistance at $0.4400, the highest level of November 2021.

Stellar’s market value to relative value (MVRV) ratio has fallen to 2.7, but is still well above its lowest point this year. The indicator remains below the extreme value of 6 that it reached in 2021.

Therefore, further Stellar Lumen gains will be confirmed if the price rises above the previous yearly high of $0.6347. A move above this level would be a signal that there are more bulls in the market who will be interested in pushing the price to the all-time high of $0.80. A rise to $1 will be confirmed if it rises above this resistance level.

On the other hand, a fall below the support at $0.4402, the November 2021 high, would invalidate the bullish view. Such a move increases the likelihood of mean reversion, a situation in which an asset falls to its mean. In this case, Stellar price could fall to the key support at $0.20, its highest level in July 2023.

XRP determines the next XLM price movement

Whether the price of Stellar Lumens rises to $1 depends on the next one Ripple price development. This is because the two cryptocurrencies often have a close correlation since they operate in the payments industry. Additionally, Stellar was founded by Jed McCaleb, a co-founder of Ripple.

The two coins have skyrocketed due to the recent Donald Trump’s victory and upcoming changes at the Securities and Exchange Commission (SEC). Analysts believe that Ripple’s legal troubles will soon come to an end and the possibility of a potential XRP ETF will arise. Likewise, Canary Capital has already filed for a spot XLM ETF that could be approved in 2025, which would lead to more institutional investments.

Therefore, the probability of the XLM token reaching $1 increases if Ripple continues its uptrend.

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Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.