Peter Smith
While most traders focus on daily price movements, Stellar (XLM) is quietly setting up for what could be one of the most significant rallies in recent months. Currently trading at $0.3904 with a modest 1.06% decline, the cryptocurrency appears to be in a consolidation phase that often precedes major breakouts. Beneath the surface, however, macro indicators are painting a compelling picture that suggests XLM may be on the verge of a substantial move higher.
The Liquidity Divergence That Everyone's Missing
The most intriguing development comes from macro analysis revealing a stark divergence between Stellar's price action and global M2 money supply trends. This disconnect shows how global liquidity continues its relentless climb while XLM remains trapped below the critical $0.40 resistance level.
As noted by trader, this divergence creates a rubber band effect that historically resolves through explosive price movements.
When assets decouple from underlying liquidity trends for extended periods, they often experience rapid catch-up moves that can surprise even seasoned investors. The current setup mirrors conditions seen before previous XLM rallies that delivered triple-digit gains.
Why $0.40 Could Trigger the Next Major Rally
Technical analysis supports the bullish narrative emerging from macro trends. The $0.40 level has acted as both support and resistance multiple times, creating a psychological barrier that, once broken, typically leads to accelerated buying. If XLM can reclaim this threshold with conviction, the next logical targets sit between $0.50 and $0.60 – representing potential gains of 28% to 54% from current levels.
The convergence of global liquidity expansion, technical breakout potential, and Stellar's strong fundamentals creates a perfect storm for upside momentum. Smart money appears to be accumulating quietly, waiting for the catalyst that transforms this consolidation into the next leg higher.
Peter Smith
