Stellar Lumen (XLM) Targets 14x Gain as Key Levels Loom

Veteran trader Peter Brandt has identified Stellar Lumen (XLM) as one of the most promising cryptocurrencies in the market, highlighting its potential for significant bullish movement. Brandt's optimism is based on two long-term technical formations: a multi-year ascending triangle and a cup-and-handle pattern, both of which historically precede large price movements. However, for XLM to realize this bullish potential, it must first close above $1 on the monthly chart and remain above its April low of $0.20. Until these conditions are met, Brandt warns that the price will likely remain range-bound.

Brandt's analysis extends beyond technical indicators, reflecting a broader market sentiment that positions Stellar favorably for the next wave of crypto adoption. The cryptocurrency's price history provides context for this outlook. Since reaching its all-time high in early 2018, XLM has been trapped in a symmetrical triangle formation, with failed breakout attempts in 2021 and late 2024. As of July 19, XLM is trading around $0.50, marking a 120% gain since the start of July but still far from the $1 level that Brandt identifies as crucial for further gains. A break above this level would validate the multi-year bullish formations and could potentially trigger a rally to Brandt's long-term target of $7.20, representing a 14x return from current levels.

July has been a pivotal month for Stellar, marked by three significant developments. The first is the upcoming Protocol 23 upgrade, which aims to enhance smart contract performance and reduce costs across the network. The second is the integration of PayPal's USD-backed stablecoin, PYUSD, with Stellar, which could significantly expand XLM's utility by enabling near-instant, low-cost cross-border transfers globally. Additionally, data indicates that over $445 million in real-world assets (RWAs) have been tokenized on Stellar, with large asset managers like Franklin Templeton and Circle leading this trend. This tokenization highlights Stellar's strong fundamentals and suggests a bright future for the cryptocurrency.

Given the similarities between XRP and XLM in terms of cross-border payments, XLM could be poised to follow XRP's recent success, which saw it hit a high of $3.65. Brandt's insights and the recent developments surrounding Stellar suggest that the cryptocurrency is well-positioned to capitalize on the growing demand for efficient and cost-effective payment solutions. However, the path to Brandt's $7.20 target remains contingent on XLM's ability to decisively close above $1 and sustain its momentum above the April low.