Peter Brandt flags XLM as 257% gain candidate as inverse head and shoulders pattern emerges amid crypto bear market

Peter Brandt, a well-known figure in cryptocurrency analysis, has singled out Stellar (XLM) as a standout asset in a recent commentary, signaling a rare bullish stance amid his generally bearish outlook on the crypto market [1]. The veteran trader, known for his rigorous chart analysis and candid market assessments, identified a potential inverse head and shoulders pattern in XLM’s monthly chart, suggesting a long-term reversal could be underway. This formation, spanning over four years, features a left shoulder (2018-2019), a head (early 2020), and a right shoulder (mid-2022 to late 2023), with a neckline resistance near $0.50. Recent price action, including a monthly close above $0.42, aligns with the pattern’s potential confirmation, with a technical target of $1.50 if the trend holds [1].

Brandt’s endorsement contrasts sharply with his broader pessimism, where he estimates that 95% of the 11,000 active tokens will lose significant value. He emphasized that most cryptocurrencies are "on life support," citing data that over 3.7 million tokens have already failed to trade meaningfully, while more than half of active projects are down over 90% from their all-time highs [1]. Despite this bleak outlook, XLM’s fundamentals—such as its cross-border payment capabilities and partnerships with the Stellar Development Foundation—position it as an exception. The token’s focus on real-world utility in financial services differentiates it from speculative assets, a key factor in Brandt’s favorable assessment [1].

Technical indicators further support XLM’s potential. Rising support levels and ascending moving averages suggest growing buyer momentum. However, the pattern’s validity depends on XLM sustaining its current momentum above $0.42–$0.45. A breakdown below $0.30 would invalidate the bullish narrative, prolonging the token’s consolidation phase [1]. This dynamic underscores the cautious optimism required for such a trade, balancing the potential for a multi-year uptrend against the risk of a false breakout.

Brandt’s analysis aligns with XLM’s established use cases but is primarily rooted in technical chart patterns. While such patterns are not infallible, their historical relevance in traditional markets lends credibility to this assessment. The market’s reaction to high-profile endorsements can also amplify short-term volatility, particularly if institutional or retail investors act on the recommendation [1]. For now, XLM’s trajectory remains contingent on maintaining its current price trajectory and broader market sentiment, which has been mixed across the crypto sector [1].

Source: [1] [Peter Brandt Just Named Stellar (XLM) His “Rock Star” Pick – Here’s Why] [https://captainaltcoin.com/peter-brandt-just-named-stellar-xlm-his-rock-star-pick-heres-why/].