Stellar formed a technical signal that last preceded a 95% rally. The cryptocurrency completed a TD Sequential buy signal on its weekly chart at price levels similar to those in March, when the same pattern emerged before a significant upward move. It trades at $0.243, down more than 4% over the past week.
What Happened: Technical Signal
Ali Martinez, a cryptocurrency analyst, spotted the signal in a post on X. Stellar completed the setup phase of the Tom Demark Sequential indicator on its weekly chart, a technical tool that identifies potential price reversals by counting candles of the same polarity through two distinct phases.
The setup phase ends after nine candles. A bullish signal emerges when nine red candles complete the sequence, suggesting a potential upward reversal.
XLM just finished this setup with nine red candles, indicating the downtrend may be exhausting itself. The same pattern formed in March at similar levels and preceded a 95% surge.
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Why It Matters: Historical Pattern
The March signal didn't trigger an immediate rally but required a consolidation period first. Whether the indicator proves accurate again remains uncertain.
Martinez's analysis highlights the historical precedent without guaranteeing a repeat performance will materialize.
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