The Stellar Lumens price is on the rise. Stellar Lumens should be assessed on its longest timeframe – that’s the weekly XLM chart which is bullish.
Short term XLM readings are meaningless.
It’s tempting to look into the question ‘what exactly will XLM do in January 2025′.
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However, given the long term XLM chart structure, it’s not the right question to ask. We’ll show readers why that’s the case in this blog post.
Stellar Lumens price on the rise
With the Stellar Lumens price on the rise comes excitement.
We typically recommend investors to stay calm, and pick the timeframe that justifies excitement.
Let’s review the charts.
In all honesty, the daily XLM chart is useless and meaningless. It does not help in creating an understanding of where it’s headed, how high it can go, where it may find support, etc.
The only timeframe that truly works is the weekly timeframe, embedded below, with our annotations:
- XLM has a track record of respecting Fibonacci levels, on its weekly timeframe. That’s great because it adds confidence to chart readings.
- XLM accelerated its downtrend in early 2022 when it lost its 38.2% Fib level (fine orange line).
- Currently, XLM is consolidating around its 25% Fib level at $0.375.
With that said, the weekly timeframe looks bullish with a textbook cup and handle reversal pattern. Bullish condition: $0.16 will be respected in 2025.
XLM price analysis for January 2025
The weekly chart of Stellar Lumens looks good, as said above.
As said, it’s pointless to try to look for clues what XLM will do in January 2025.
Just trying to answer this question pulls the person doing this into the shortest timeframe, which is the least relevant timeframe.
The one and only thing that matters for XLM is the longest timeframe. Yes, we are beating a dead horse with this statement, and that is absolutely fine to bring across the message.
Stellar Lumens long term
InvestingHaven.com has been covering XLM articles since 2017.
- While it may seem that ‘old stuff’ is irrelevant, we did find some really interesting XLM insights in our archives.
- One cool insight from the past is that XLM hit the 4th largest token in terms of market cap on Feb 2nd, 2019.
- It seems the leaders become laggards, and former laggards can become new leaders (not always, but sometimes).
With Stellar Lumens price on the rise, in a more crypto friendly environment (especially in the US), we believe looking at long term patterns and correlations with other tokens is the way to go. Assessing whether Stellar Lumens is the better choice, long term, but also how it relates to correlated tokens in the same narrative. That’s the way to go in our view as opposed to trying to solve the question what XLM will do in January 2025.
We are investigating this as a research question for our premium service, and will report the outcome of our research to our members on Friday, January 17th, 2025. You can feel free to sign up to receive this research report >>
