In a remarkable turn of events, Stellar (XLM) has surged to become the top-performing asset in the cryptocurrency market over the last seven days, based on data from TradingView. This surge has reignited interest and demand for Stellar, propelling its price to new heights. Notably, this resurgence is accompanied by a significant shift in market dynamics, with bulls taking the reins on September 4th.
Bulls Regain Control on September 4th
September 4th marked a pivotal moment for XLM’s spot market as it witnessed an impressive 8% intraday price surge, signaling a clear shift in momentum. This bullish trend is further corroborated by technical indicators, particularly the Moving Average Convergence/Divergence (MACD) indicator, which currently indicates a strong bullish presence. The MACD indicator has consistently displayed green histogram bars since September 4th, underlining the bull’s dominance.
Accumulation Trends and Momentum Indicators
Key momentum indicators provide additional insights into the heightened interest in XLM among daily traders. The Money Flow Index (MFI) stands at 64.24, indicating that XLM accumulation has surpassed sell-offs. Furthermore, the %K line (blue) of the Stochastic RSI indicator is firmly positioned at 100%, signifying that XLM accumulation outweighs distribution. The Stochastic RSI indicator is instrumental in measuring market momentum and identifying overbought and oversold conditions.
Caution Amidst Overbought Conditions
While the surge in XLM’s price is undeniably impressive, it’s essential to exercise caution. XLM’s Stochastic RSI currently stands at 100%, indicating that the token is in an overbought state. Historically, such overbought levels have posed challenges for buyers in sustaining further price rallies, often leading to a corrective phase.
As Stellar continues to captivate the cryptocurrency market with its recent performance, traders and investors should remain vigilant, considering the potential implications of XLM’s overbought status on future price movements.