Stellar (XLM) Flashes Bullish Signal, Eyeing Potential 95% Rally

Stellar (XLM) has recently triggered a Tom Demark (TD) Sequential buy signal, a powerful technical indicator that historically preceded a massive 95% price surge for the cryptocurrency. Analysts are closely watching to see if this pattern will once again lead to significant gains.

Understanding the TD Sequential Buy Signal

The Tom Demark (TD) Sequential is a technical analysis tool designed to identify potential turning points in an asset's price trend. It operates in two phases: a "setup" and a "countdown." The setup phase involves counting nine consecutive candles of the same polarity (e.g., nine red candles indicating a downtrend). Once the setup is complete, a "countdown" phase begins, often culminating in a buy or sell signal after thirteen candles of similar polarity. For Stellar, the recent appearance of a "nine red candles" setup suggests that the current downtrend might be nearing exhaustion, hinting at an impending bullish reversal.

Historical Precedent and Current Outlook

This isn't the first time Stellar has presented a TD Sequential buy signal at similar price points. Back in March, an identical pattern emerged, which was followed by an impressive 95% price rally for XLM after a period of consolidation. The historical accuracy of this indicator for Stellar has fueled optimism among investors. Currently, Stellar is trading around $0.243, having experienced a decline of over 4% in the past week. The key question now is whether this proven indicator will hold true once more and usher in another substantial rally for XLM in the coming weeks.