Stellar’s native token XLM is showing strong bullish momentum, fueled by a continuation pattern on the charts and a renewed rally in XRP.
As of the latest data, XLM is trading at $0.4712 and is forming an ascending triangle, a common technical pattern that often precedes upward price movement.
The pattern’s resistance level around $0.52 has been tested multiple times in recent days, while the rising lows beneath it indicate growing buying interest.
A breakout above this level could push XLM toward $0.63, marking a potential 35% gain from its current price.
The price target is calculated by adding the triangle’s height to the breakout level, a standard method used in technical analysis.
Momentum indicators support this setup. The 4-hour Relative Strength Index (RSI) remains below overbought territory, and it leaves room for further gains.
Additionally, XLM is trading above its 20-, 50-, and 200-period exponential moving averages on the 4-hour chart. All three EMAs are sloping upward, which strengthens the short- and medium-term outlook.
Veteran trader Peter Brandt has pointed to XLM as one of the most promising charts in the crypto market.
He noted that while the token has not yet closed above the $1 mark with conviction, doing so could open the door for larger moves.
According to Brandt, this horizontal level remains a key hurdle and must be cleared decisively for the long-term bullish case to hold. XLM current rally also appears to be following XRP’s lead.
Historically, the two assets show a high correlation due to their shared founder and similar use cases in cross-border payments. During bull cycles, the correlation coefficient between XLM and XRP often exceeds 0.70.
A notable case occurred in July 2023 when a favorable court ruling for Ripple drove a sharp rally in XRP, followed by a nearly identical move in XLM.
That event pushed the correlation between the two coins to 0.95. The trend appears to be repeating in 2025. XRP has gained more than 590% since the November low, while XLM is up over 425%.
This lag suggests XLM could be undergoing a catch-up rally, potentially continuing its climb if XRP holds its current gains.
