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Peter Brandt: XLM has the potential to soar above 7 USD.
Famous trader Peter Brandt recently shared some notable analysis and predictions about Stellar (XLM), an altcoin that is drawing strong attention from the cryptocurrency community. XLM, the cryptocurrency that has seen one of the most impressive growth rates in July, not only due to its strong performance but also because of its strange correlation with XRP, another leading cryptocurrency. However, despite the positive predictions, short term traders need to be extremely cautious when facing several risk factors.
Peter Brandt: XLM has strong potential for price increase
Peter Brandt, one of the most famous and influential technical analysts in the crypto community, has shared his views on the potential of XLM in the near future. Brandt believes that XLM may experience significant gains, but this will only happen if the coin can hold above certain key price levels.
According to Brandt, XLM needs to maintain above the April lows of (0.2 dollars) and close the month above 1 dollar firmly. If this happens, XLM could continue to enter a strong growth cycle.
"The price chart that is likely to rise the most belongs to XLM," Brandt shared in his analysis.
The price range mentioned by Brandt is quite broad. If XLM can maintain stability above the $1 level, the price could rise to $7.2, leading to Stellar's market capitalization exceeding $200 billion. This prediction is based not only on technical analysis but also supported by long-term chart patterns, including the ascending triangle pattern from 2018 and the cup and handle pattern from 2021.
Will XLM follow in XRP's footsteps?
One of the notable points in Brandt's analysis is the correlation between Stellar and XRP. Recently, XRP reached a new record high of $3.65, providing a basis for analysts to expect that XLM will also experience a strong breakout. The possibility of XLM growing strongly similar to XRP will further strengthen the belief in a strong price increase for this altcoin in the near future.
However, the risks for traders are also increasing, especially as the open contract volume (OI) of XLM has reached a record high of nearly 600 million dollars. This could create significant volatility, and traders using high leverage may face losses if the price of XLM does not move in the direction they expect.
Not only relying on technical analysis, XLM also has a solid fundamental basis to support this growth trend. Recently, Stellar announced the Protocol 23 Upgrade Guide, marking an important step in improving the scalability of the network. With this upgrade, smart contracts on Stellar will become faster and cheaper, creating strong growth potential for this ecosystem.
In addition, one of the other strong growth drivers of Stellar is its collaboration with PayPal. PayPal's stablecoin PYUSD will be integrated with Stellar, opening up opportunities for global money transfers at low costs, contributing to the widespread adoption of XLM in global transactions. One of the popular DeFi wallets, THORWallet, now also fully supports XLM, allowing users to send, receive, hold, and swap XLM directly through a secure mobile app.
Moreover, Stellar currently holds a total value of tokenized real assets (RWA) amounting to 440 million dollars, most of which is managed by major financial institutions such as Franklin Templeton and Circle. This demonstrates the stability and strong growth potential of the Stellar ecosystem in the future.
Lilly