Renowned trader Peter Brandt has identified Stellar (XLM) as the most bullish cryptocurrency in the current market, surpassing Ethereum, Solana, and XRP in technical strength. Brandt's analysis highlights an inverse head-and-shoulders pattern forming since 2018 and a cup-and-handle pattern developing since 2021, suggesting massive upside potential if two critical conditions are met: XLM must hold above its April low of $0.20 and achieve a decisive monthly close above the $1 resistance level.
If these conditions are satisfied, Brandt projects a potential rally to $7.20 – a 14x increase from current prices that would push XLM's market cap above $200 billion. This technical outlook is reinforced by XLM's 120% July surge to $0.50 and its curious historical correlation with XRP, which recently hit a $3.65 all-time high. However, Brandt cautions that failure to breach $1 would keep XLM range-bound.
Short-term risks are emerging despite the bullish sentiment, with Open Interest reaching record highs near $600 million. The 3.4% daily increase in futures activity signals leveraged speculation that could trigger volatile liquidations. Fundamentally, Stellar's momentum is bolstered by the upcoming Protocol 23 upgrade (scheduled for August 14 Mainnet vote), which promises faster and cheaper smart contracts, PayPal's PYUSD integration for global payments, THORWallet's new XLM support, and $445 million in real-world asset tokenization led by Franklin Templeton and Circle.