Key Insights
- Peter Brandt identified a bullish triangle pattern in XLM, pointing to a possible breakout if it breaches the upper resistance level.
- XLM has held above support after reaching $0.52, showing strength despite a 4% decline in the past week.
- Brandt sees XLM as a potential exception in a market where many tokens, in his view, are headed toward worthlessness.
Veteran commodity trader Peter Brandt has shared a bullish outlook for Stellar (XLM), citing a large symmetrical triangle formation on its price chart. The cryptocurrency is currently trading near the upper boundary of the pattern, a position that often precedes a potential breakout. According to Brandt, XLM may be gearing up for a strong upward movement in the coming weeks.
Brandt has identified a potential price target of $1.51 if the bullish pattern unfolds as expected. XLM reached a local high of $0.52 on July 18 during a sharp rally but has since slipped by 4 percent over the past week. Despite the recent pullback, the token remains up significantly from earlier levels and is showing resilience around current support levels.
XLM Ranks Ahead in Altcoin Competition
During its recent surge, XLM managed to outperform Ripple-linked XRP, its often-compared peer. Both tokens are associated with Jed McCaleb, who played a founding role in Ripple and later launched Stellar. XLM now ranks as the 16th largest cryptocurrency by market capitalization, staying ahead of other major altcoins such as Chainlink (LINK) and Hedera (HBAR).
Brandt’s new assessment of Stellar marks a notable shift from his earlier predictions. He had previously classified XLM among digital assets he believed would become “basically worthless.” His change in stance follows a broader reflection on the crypto market, where he estimates that 95% of actively traded cryptocurrencies will eventually lose value.
Broader Crypto Outlook Remains Cautious
While Brandt remains cautious about the long-term value of many cryptocurrencies, he believes a few tokens like XLM have the potential to defy the trend. He estimates that around 3.7 million cryptocurrencies have already become defunct and views half of the current projects as overvalued. Despite this, he acknowledges that the formation seen in XLM presents a possible bullish exception.
