Stellar's XLM token saw a significant 13.03% price increase over the past 24 hours, surging to $0.1601. This marks a strong recovery for Stellar, which had traded sideways over the past week after a powerful 70%+ rally in July.

The recent gains have propelled XLM to its highest level since May 2022, as bullish momentum returns to the cryptocurrency. Stellar now faces short-term resistance around $0.1650, with a break above that potentially signaling a move to retest its 2022 high.

In our analysis, we'll examine Stellar's latest price action, on-chain metrics, sentiment, and market outlook. Key highlights include:

• XLM seeing bullish momentum return after period of consolidation
• Trading volume rising sharply in tandem with price breakout
• Stellar network activity remains robust, with adoption metrics looking healthy
• Macro backdrop improving for altcoins, helping drive XLM rebound
• Resistance around $0.165, with target at $0.20 if uptrend resumes

Is Stellar Poised for a Breakout Rally?

Stellar's XLM token has established a clear uptrend in July, surging over 70% to reach its highest level since May 2022. The powerful rally came as XLM broke free from a multi-month downtrend that saw it plunge as low as $0.116 in June.

After briefly stalling out around $0.15 in mid-July, XLM regained momentum this week. The 13% daily surge was backed by a spike in trading volume, indicating strong conviction behind the buying pressure.

On-chain data remains supportive too. The number of active Stellar accounts continues rising steadily, showing growing network adoption despite XLM's cooldown period.

With Stellar now trading at its highest point in over two months, bulls will be keen to avoid a retracement. The first test will come around the $0.165 area, where XLM met resistance in May. A break above this would open the door for a continued rally.

Can Stellar Get Back to $1 in This Cycle?

Stellar's XLM token reached an all-time high of $0.938 in January 2018 during a massive altcoin run. However, XLM has struggled to come close to this peak ever since. Its 2022 high tapped out at $0.520 in late March, still 45% below its record level.

Given the prevailing bearish conditions across crypto markets, a return to $1 seems unlikely in the immediate future. Stellar would likely need a euphoric environment like 2021 to facilitate such an extreme price surge.

However, if bullish momentum keeps building, XLM regaining its 2022 high around $0.52 appears achievable. This would require clearing the imminent resistance zone around $0.165-$0.175 convincingly.

If Bitcoin and Ethereum can sustain their own uptrends, Stellar may benefit from a rising tide that lifts all altcoins. But XLM will need to keep posting adoption metrics that justify significant price appreciation in the eyes of investors.

Conclusion

Should I Buy Stellar After its Recent Rally?

Stellar looks positioned nicely after bouncing off its June lows and surging over 70% in the past month. The recent 13% breakout signals bullish momentum could be resuming.

However, chasing a pump comes with risks. Waiting for a pullback to the $0.15 zone may be prudent before starting a long position. This would provide a better risk/reward entry.

For long-term holds, accumulating XLM below $0.175 makes sense. Stellar continues seeing strong adoption metrics, and trades at a fraction of its all-time high - giving it plenty of upside potential.

How High Can Stellar Go In The Next Bull Run?

Given Stellar's promising adoption trajectory and useful bridging abilities in DeFi, a rally back to its all-time high around $1 seems feasible next cycle. This would require a 300% gain from current levels.

If crypto markets indeed follow a four-year cycle pattern, the 2025/2026 timeframe could bring the ideal conditions for an extended XLM bull run. Stellar also benefits from close ties to Ripple, with partnerships potentially boosting real-world usage.

With strong execution, Stellar could even eclipse its former $1 peak. But have patience, trade cautiously, and stick to a long-term mentality when investing in cryptocurrencies. The path is never linear.