Altcoins Surge as Market Shifts Focus from Bitcoin

Stellar’s XLM Gains Traction with Bullish Momentum

As the cryptocurrency landscape evolves, many investors are shifting their attention from Bitcoin to alternative cryptocurrencies, commonly known as altcoins. This transition has sparked renewed interest in several altcoins, showcasing promising technical patterns and increasing trading activity that hint at potential price increases across the board.

Stellar’s XLM has emerged as a standout performer, experiencing a remarkable price increase and a bullish breakout that has caught the eye of market analysts. Over the past week, XLM has surged nearly 60%, currently trading around $0.47, significantly outperforming major competitors such as Ethereum, Solana, and XRP.

Technical Analysis Highlights XLM’s Potential

Veteran trader Peter Brandt has identified XLM’s chart as particularly compelling among leading cryptocurrencies. He points to an inverse head-and-shoulders pattern on the monthly chart, suggesting that a breakout above the $1 mark is critical. This level has historically acted as a significant resistance point, thwarting previous attempts at upward movement.

Supporting this optimistic outlook, analyst Solberg Invest has noted XLM’s recent momentum after it surpassed the $0.43 threshold, a key technical barrier. Solberg has set a target of $0.60, indicating that if the current momentum persists, further gains could be on the horizon.

Market Sentiment and Trading Activity

Traders appear to share this bullish sentiment. Data from Coinalyze reveals a 3.4% increase in open interest over the last 24 hours, bringing total perpetual contracts to $270.9 million. Positive funding rates across various exchanges suggest that bullish leverage is building, reinforcing the notion of a favorable market sentiment.

However, the rapid ascent in XLM’s price and the prevalence of long positions introduce the possibility of short-term corrections. Recent trading activity has shown signs of a short squeeze, which could lead to increased volatility if market sentiment shifts. While XLM’s technical indicators remain robust, the market is still susceptible to changes in trader positioning.

Author Insights

Meet the Author

Kosta Gushterov
Reporter at Coindoo

Kosta has been part of the Coindoo team since 2021, quickly making a name for himself with his insatiable curiosity, dedication, and analytical skills. He covers a broad spectrum of topics and produces insightful reviews, press articles, and educational content. His work is frequently referenced by other news outlets.

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Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.