The Stellar (XLM) price has increased considerably since it reached a low in March 2020. It has been rising at an accelerated rate over the past two months.
If the rate of increase persists, XLM may undergo a rally similar to that which led to the massive moves in 2018.
This article will compare the previous market cycles and see how the current upward trend compares.
First All-Time High
The first major upward move took place between Nov. 2016 – May 2017. On May 7, 2017, XLM reached an all-time high price near $0.082. The entire upward move lasted 154 days and amounted to an increase of 5,457%.
What followed was a long corrective period, in which it fell by a massive 92% over the next 132 days. The decrease culminated in a low of $0.006 on Sept. 15, 2017. After creating a bullish hammer on the daily time-frame, XLM began an upward move that led to further bullish price action.
Current All-Time High
The ensuing upward move for XLM was even more consequential in both directions. There was a massive increase of 14,956% in only 112 days that led to an all-time high around $0.92, a price that has yet to be broken.
However, what followed was an extended corrective period, in which XLM slowly bled out and lost 97% of its value over 798 days. On March 13, 2020, it settled on a low of $0.026 but has been moving upwards since.
XLM Current Movement
The move since the March low can be divided into two cycles. The first one was a gradual increase that played out over 157 days and measured 354%. It was followed by a 50% fall over 70 days, leading to a low of $0.057 in Oct. 2020.
Since then, XLM has been on an accelerated upward path, which resembles the move to the all-time high, increasing 518% in only 71 days. On Jan. 7, it touched a high of $0.41. XLM is currently trading around $0.36.
If the rate of increase continues, it could reach a new all-time high price in the coming months. When looking at the weekly chart, XLM was rejected at the 0.382 Fib retracement level ($0.367) before falling.
However, after the 0.5 Fib retracement at $0.47, which is also a horizontal resistance, there is virtually no resistance beyond that until the all-time high. Furthermore, technical indicators are bullish, indicating that XLM is in a long-term upward trend.