According to top crypto analyst and trader Alan Santana, Stellar (XLM) may have reached its bottom against Bitcoin (BTC). Santana shared his analysis on TradingView, where he highlighted key indicators suggesting a bullish reversal for the XLM/BTC trading pair.
With historical lows in place and divergence from the broader market, Santana’s analysis points to the possibility of significant growth in the coming months.
What you'll learn 👉
Early Bottom Formation Indicates Bullish Reversal
Alan Santana’s analysis suggests that the XLM/BTC pair has already found its bottom, with the lowest point occurring in early June 2024. This was when much of the crypto market continued to decline until August, making Stellar’s early recovery a notable development.
While other cryptocurrencies experienced further losses in August, XLM/BTC managed to avoid new lows, even registering a green session during the first week of August. This early bottom formation could indicate that XLM/BTC has decoupled from the broader market.
According to Santana, the fact that Stellar reversed ahead of the market is a strong signal that it is poised for growth. This trend suggests that the pair could be preparing for an extended bullish phase.
Technical Chart Analysis
Santana’s chart of XLM/BTC shows a prolonged downtrend marked by descending channels. However, it now displays a potential bullish reversal pattern in the form of a smaller falling wedge. This technical pattern is often seen as a precursor to an upward breakout.
Once the pair breaks out of this wedge, it could mark the beginning of a significant uptrend for XLM/BTC. In Santana’s projection, there are three potential price targets for this bullish trajectory: 0.0000434 BTC (193% growth), 0.0000922 BTC (522% growth), and 0.0001407 BTC (850% growth).
While the exact timing and intensity of this move remain uncertain, the pattern strongly suggests that Stellar is gearing up for a period of sustained growth.
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Accumulation Opportunity Ahead of Growth
Santana emphasizes that this moment could be a favorable opportunity for accumulation. With XLM/BTC trading near its lows and showing signs of recovery, the pair is positioned for potentially substantial gains.
He says that both circumstances indicate growth, regardless of whether the movement is a sudden spike or a slow ascent with higher highs and lows.
Moreover, he recommends keeping an eye out for a breakout from the falling wedge as XLM/BTC consolidates close to its lows. Stellar may have its biggest bullish wave to date if this pattern unfolds as predicted, which would make it a desirable asset to accumulate.
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