- Peter Brandt identifies a bullish triangle in XLM, pointing to a potential breakout with a target of $1.51.
- XLM has outperformed XRP recently and now ranks 16th by market cap, staying ahead of LINK and HBAR.
- Despite the warning that 95% of coins may fail, Brandt sees renewed potential in Stellar’s current price structure.
Veteran commodities trader Peter Brandt has shifted his stance on Stellar (XLM), suggesting the digital asset may evolve from a former “pet rock” to a “rock star.” Brandt highlighted a significant bullish technical pattern, pointing to a large symmetrical triangle forming on XLM’s chart.
According to Brandt, XLM is now approaching the upper trendline of this symmetrical triangle, a formation that historically precedes a breakout. The token recently reached a local peak of $0.52 on July 18, although it has since slipped by 16%. Despite the pullback, Brandt has identified a potential target of $1.51, should the breakout occur.
Market Comparison and Recent Performance
Stellar has been compared with XRP due to their shared connection to Ripple co-founder Jed McCaleb. However, during the rally in July, XLM outperformed XRP, strengthening its market position. As of now, Stellar holds the 16th spot by market capitalization, maintaining its lead over Chainlink (LINK) and Hedera (HBAR).
Previously, Brandt had categorized XLM among cryptocurrencies he expected to become “basically worthless.” This marks a significant revision of his outlook, suggesting growing confidence in XLM’s technical setup. The change in tone comes despite the trader’s broader view that the majority of cryptocurrencies are overvalued.
Broader Crypto Market Perspective
Brandt remains skeptical of the broader crypto market. He believes that 95% of currently traded tokens will become worthless over time. He likened many cryptocurrencies to speculative fads such as Beanie Babies and “pet rocks.” He also stated that more than 3.7 million tokens have already become inactive or “dead,” reinforcing his belief in overvaluation across the sector.
Despite the cautious sentiment around digital assets, Brandt’s chart analysis suggests that Stellar may defy broader trends. The bullish triangle pattern he presented aligns with previous setups that led to price surges. If market momentum supports the technical outlook, XLM could see a strong breakout shortly.
