The cryptocurrency market witnessed a period of consolidation in January, with Stellar Lumens (XLM) mirroring the performance of Bitcoin (BTC) and other major altcoins. As of Friday, XLM was trading at $0.4240, down 33% from its peak in November last year.

Technical Analysis Suggests Potential Price Surge in February

From a technical standpoint, Stellar’s price charts indicate the potential for further gains in February. The formation of a bullish pennant pattern in December and January suggests a continuation signal. This pattern consists of a long vertical rally followed by a symmetrical triangle. A bullish breakout typically occurs when the two lines of the triangle approach convergence.

Additionally, the Elliott Wave formation suggests additional upside potential. This pattern consists of five key phases, beginning with a bullish wave, followed by a corrective pullback. The third wave, which took place in November, is usually the longest, and it was followed by the fourth corrective wave. Based on this structure, Stellar may enter its fifth bullish wave in February.

Furthermore, Stellar has formed a golden cross pattern on the chart, where the 50-week and 200-week moving averages have crossed. The price has remained above these two averages, indicating that bullish momentum remains intact.

Potential Price Movement and Catalysts

Based on these technical indicators, Stellar’s price may rebound and retest its all-time high of $0.7960 in February, representing a potential 90% increase from its current level.

Several catalysts could drive Stellar’s price movement in February. These include:

  • Historical data showing that February is often a strong month for cryptocurrencies, with Bitcoin and Ethereum tend to perform well in February and March.
  • Potential US government support for cryptocurrencies, with Donald Trump considering focusing on “Made in USA” coins to appeal to the crypto industry.
  • An XRP ETF approval, which could benefit Stellar due to the close relationship between the two coins in the payment industry.

As the cryptocurrency market continues to evolve, it’s essential to stay informed about the latest developments and trends. For more news and updates, visit Global Crypto News.

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