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The Stellar price rally follows the formation of a bullish “golden cross” on the technical charts, signaling a shift in momentum.
Key Notes
Stellar (XLM) has soared to $0.2393, extending its weekly gains to 118% and crossing a market cap of $7.16 billion.Historically correlated with XRP, XLM has benefited from XRP's recent surge past $1, driven by positive regulatory news and whale activity.For the near term, XLM faces resistance at $0.25 and $0.27, with the potential to climb to $0.44 and $0.80 if bullish momentum persists.While Bitcoin most of the altcoins have entered consolidation, Stellar XLM $0.24 24h volatility: 22.9% Market cap: $7.16 B Vol. 24h: $2.29 B price has registered another 21% gains shooting all the way to $0.2393 with its market cap soaring past $7.16 billion. With this rally, Stellar has extended its weekly gains to more than 118% entering the list of top 20 cryptocurrencies by market cap.
The recent XLM mega rally occurs as the cryptocurrency forms a bullish “golden cross” signal on the technical chart. A golden cross, a bullish indicator, forms when the 50-day moving average surpasses the 200-day moving average.
For XLM, this recent golden cross aligned with a breakout above crucial resistance levels, propelling the price to fresh multi-year highs of $0.243, a level last seen in March 2022.
Photo: TradingView
Even earlier this year in March, when Bitcoin rallied to $74,000, XLM price printed a similar golden cross. However, the bulls gave up on further rally and this was immediately followed by a death cross.
However, this time, the golden cross signifies a major shift in momentum after a long period of consolidation. XRP and XLM have historically displayed a strong price correlation. On Saturday, XRP surged past the $1 mark, reaching a three-year high. This rally, fueled by positive regulatory news and heightened whale activity, has also provided a boost to XLM’s price momentum.
The Stellar price has been on a bullish rally following the US elections and Donald Trump’s victory. Of the last 13 days, the XLM price has been trading at a premium for nearly 11 days.
For the near term, the XLM price will face resistance at $0.25 and $0.27. However, if the bulls manage to push through this, it can further continue the rally to $0.44 and $0.80.
Stellar (XLM) Price On-Chain Indicators
XLM’s Open Interest (OI) has seen a significant surge alongside its trading volume, signaling robust bullish sentiment. Elevated OI levels typically indicate increased capital inflows and the establishment of new market positions, reflecting growing investor confidence.
Currently, XLM’s OI stands 46% up in the last 24 hours at $144 million, marking its highest level since Ripple’s partial legal victory in July 2023, according to CoinGlass. If this trend continues, XLM’s price could potentially climb beyond the $0.40 mark.
However, one area to be cautious about is the drop in the daily trading volumes. In the last 24 hours, XLM’s trading volume dropped by 30% to $2.02 billion. With prices rising and trading volumes dropping, it indicates that bulls are losing interest after the recent rally.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
