Here’s Why the Bottom Is In for Stellar Against Bitcoin (XLM/BTC) – Top Trader

According to top crypto analyst and trader Alan Santana, Stellar (XLM) may have reached its bottom against Bitcoin (BTC). Santana's analysis, shared on TradingView, highlighted key indicators suggesting a bullish reversal for the XLM/BTC trading pair.

With historical lows in place and divergence from the broader market, Santana's analysis suggests XLM/BTC could experience significant growth in the coming months.

Early Bottom Formation Indicates Bullish Reversal

Santana's analysis suggests that the XLM/BTC pair found its bottom in early June 2024, while the broader crypto market continued to decline until August. Stellar's early recovery is a notable development.

While other cryptocurrencies experienced further losses in August, XLM/BTC held steady, even recording a green session during the first week of August. This early bottom formation could indicate that XLM/BTC has decoupled from the broader market.

According to Santana, Stellar reversing ahead of the market is a strong signal that it is poised for growth, suggesting that the pair could be preparing for an extended bullish phase.

Technical Chart Analysis

Santana's chart of XLM/BTC shows a prolonged downtrend marked by descending channels. However, it now displays a potential bullish reversal pattern in the form of a smaller falling wedge, a technical pattern often seen as a precursor to an upward breakout.

Once the pair breaks out of this wedge, it could mark the beginning of a significant uptrend for XLM/BTC. Santana projects three potential price targets for this bullish trajectory: 0.0000434 BTC (193% growth), 0.0000922 BTC (522% growth), and 0.0001407 BTC (850% growth).

While the exact timing and intensity of this move remain uncertain, the pattern strongly suggests that Stellar is gearing up for a period of sustained growth.

Accumulation Opportunity Ahead of Growth

Santana emphasizes that this moment could be a favorable opportunity for accumulation. With XLM/BTC trading near its lows and showing signs of recovery, the pair is positioned for potentially substantial gains.

Santana recommends keeping an eye out for a breakout from the falling wedge as XLM/BTC consolidates close to its lows. If this pattern unfolds as predicted, Stellar may have its biggest bullish wave to date, making it a desirable asset to accumulate.