Stellar (XLM) is showing signs of recovery after a brief downturn, with its price trading at $0.344. This comes as the digital asset attempts to regain momentum after a period of mixed performance. With resistance at $0.360 presenting a significant hurdle, many traders are looking to key technical indicators to determine if XLM can break through and push higher, possibly targeting $0.40 in the near future.
Stellar’s price has been relatively volatile over the past week, fluctuating between $0.320 and $0.360. Despite this, the cryptocurrency has made attempts to recover from a recent downtrend, showing some resilience. As the market remains uncertain, with Bitcoin’s price action playing a key role in influencing altcoins like XLM, traders are cautiously eyeing key technical levels.
At press time, XLM’s trading volume stands at approximately 26.85 million, suggesting moderate activity in the market. While this indicates some level of interest, the market sentiment remains neutral, leaving the outlook for XLM uncertain in the short term.
Several technical indicators are currently suggesting a potential shift in XLM’s trend, though challenges remain for the digital asset. One of the more notable observations is the recent crossover between the 50-day and 200-day Moving Averages (MA). This crossover, typically viewed as a sign of a possible trend reversal, has traders on alert for a potential bullish move, though caution is still advised due to the risk of further downward pressure.
Relative Strength Index (RSI)The RSI, a key momentum indicator, currently sits at 51.12. This level indicates neutral market conditions, meaning that XLM is neither overbought nor oversold. If the RSI crosses above 60, it could indicate a strengthening bullish trend, signaling that the digital asset has room to rise.
Moving Average Convergence Divergence (MACD)The MACD, another important trend-following indicator, is currently showing signs of a potential bullish phase. The MACD line has crossed above the signal line, a bullish signal that suggests growing buying pressure. If this trend continues and the MACD histogram prints green bars, it could be a sign of further price increases for XLM in the coming days.
Bollinger BandsBollinger Bands are currently indicating heightened volatility. XLM’s price is nearing the middle band, the 20-day Simple Moving Average (SMA) at $0.336. Should the price breach the upper Bollinger Band at $0.360, it could trigger an upside breakout, clearing the way for further gains.
When analyzing XLM’s price action using Fibonacci retracement levels, several key areas stand out. The 23.6% retracement level at $0.341, which aligns with the current price, represents a potential support zone. A sustained move above this level could signal further upside potential.
The 38.2% retracement at $0.326 is another critical support level to watch. If XLM fails to maintain its current momentum and dips below this point, traders will look to the 61.8% retracement level at $0.301 as a potential area of support.
On the resistance side, the critical level to watch is $0.360. A breakout above this point would place XLM on track to challenge higher targets, including $0.380 and possibly $0.400, depending on the strength of the rally. Traders will closely monitor how XLM interacts with these levels in the coming days to gauge the likelihood of a breakout.
The short-term outlook for Stellar depends largely on its ability to break above the $0.360 resistance level. Should XLM manage to push past this critical price point, the next target would likely be the $0.380-$0.400 range, supported by the ongoing bullish signals from both the RSI and MACD.
However, if the price fails to maintain its momentum and drops below $0.320, the digital asset could face a retest of the $0.300-$0.283 range, in line with Fibonacci retracement levels. Traders should remain cautious and keep an eye on the ongoing market conditions, as XLM’s price action is still heavily influenced by broader market trends, especially Bitcoin’s performance.
To sum up, while XLM is showing early signs of recovery, its next move depends on breaking through key resistance levels and sustaining bullish momentum. As always, traders should stay vigilant and follow technical indicators like the RSI, MACD, and support/resistance levels for further insight into the cryptocurrency’s direction.
As we look ahead, XLM’s price action will be dictated by its ability to break through the $0.360 resistance level. If the cryptocurrency can maintain its bullish momentum, it could reach higher targets, including $0.380-$0.400. However, failure to hold above key support levels could lead to further downside testing. Traders are advised to monitor XLM closely, watching for signs of trend reversal or continuation in the coming days.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
Get the latest Crypto & Blockchain News in your inbox.
Join Now