Usman Salis
Veteran commodity trader Peter Brandt has done a complete 180 on Stellar (XLM), saying the cryptocurrency could transform from a "pet rock" into "a rock star." It's quite the turnaround from a guy who previously thought XLM would become "basically worthless."
Brandt shared a bullish chart showing XLM forming a large symmetrical triangle pattern. The token is getting close to the upper line of this triangle, which means we might see a breakout soon. He's eyeing a price target of $1.51 for the altcoin - that's some serious upside potential.
Stellar (XLM) Price Outshines XRP During July Rally
Stellar has been holding its own lately, especially during July's rally when it actually outperformed Ripple's XRP token. That's pretty impressive considering most people lump these two together because of their connection to billionaire Jed McCaleb, who co-founded Ripple before jumping ship to create Stellar.
Right now, XLM sits at 16th place by market cap, staying ahead of bigger names like Chainlink (LINK) and Hedera (HBAR). The token hit a new record high of $0.52 on July 18 on Binance, though it's pulled back since then. We're looking at a 4% drop over the past week and it's currently trading about 16% below that peak.
Brandt's Harsh Take on Crypto Market vs XLM Price Potential
Here's what makes Brandt's bullish call so interesting - this is the same guy who thinks 95% of all actively traded cryptocurrencies will eventually be worthless. He's compared many tokens to pet rocks and Beanie Babies, calling them nothing more than fads.
The legendary trader points out that 3.7 million cryptocurrencies are already dead, and he believes half of the ones still trading are way overvalued. So when someone this skeptical about crypto suddenly gets excited about XLM, it's worth paying attention.
The symmetrical triangle pattern Brandt spotted is considered pretty reliable in technical analysis. These formations usually build up over time before breaking out in a big way. If his analysis is right and XLM does hit that $1.51 target, we'd be looking at one heck of a transformation from "pet rock" to "rock star."
Usman Salis
