Stellar (XLM) price has broken a long-term downtrend, showing a shift to bullish momentum after reclaiming former resistance as support. The trend now favors buyers, but overbought conditions and weaker volume suggest a possible short consolidation before further upside continuation.
At the time of writing, XLM is trading at $0.2161 with a 24-hour trading volume of $1.53 billion and a market capitalization of $7.27 billion. Following the 1.89% gain over the last 24 hours, the XLM price structure and improving technicals point to a bullish reversal.
Source: CoinMarketCap
XLM Price Eyes $0.31 After Breaking Downtrend
Furthermore, the crypto analyst Bitcoi Meraklisi revealed that XLM has surged about 57%, marking a strong shift in market structure after breaking a downtrend that had persisted since October.
Following the breakout, price action completed a successful retest, confirming former resistance as support. This validation triggered renewed bullish momentum, with the asset reaching and completing its first two projected targets.
Source: Bitcoin Meraklisi’s X Post
At present, XLM is trading above the previously broken trendline and now acts as an important support level. Until this support remains intact, the outlook is constructive, with further resistance levels at around $0.2527 and $0.3110, which appear to be the potential targets of a move from here. It is noteworthy that the current momentum seems to favor the bulls.
Also Read: XLM Price Eyes Rally Toward $1.29 as Stellar Gains Institutional Momentum
XLM Reclaimed All Moving Averages After Breakout
According to TradingView, XLM emerges like a storm following months of consolidation that favored the bears below its moving averages.
An exceptionally high green candle pierced the 20, 50, 100, and 200 EMAs, shooting upward from its base at $0.1440 all the way up to a high of $0.22334. This influx of buying momentum helped push XLM up to $0.21597.
Source: TradingView
The explosive rally caused a shift in the trend of the XLM price, causing the RSI to spike to 80.14 and land itself in the overbought category.
Breaching the 200 EMA at $0.19682 signals that there could be an emerging reversal in the overall macro-trend, but with such a sharp increase, there can be expected a breather for some time.
Rising Open Interest Point to Improving Sentiment
However, the open interest of XLM rose by 6.98%, reaching $301.46M, indicating that there has been a bigger commitment of funds and a rise in derivative positions. This shows that traders are getting involved, expecting a price movement in the future.
Source: Coinglass
The volume declined by 13.10% to $2.82 billion, which indicates that there is a slowdown in trading. The inference from the above figure is low liquidity and caution among the investors.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: XLM Price Prediction: Breakout Structure Signals Potential Surge to $0.280 Zone
