Stellar’s recent breakout has ignited speculation about a potential 50% surge in the XLM price. After taking support from an upward trendline and benefiting from Bitcoin’s upward movement, XLM has seen a 5% surge in intraday trading. Currently, it has reached a level of $0.0990 after experiencing a pullback from a brief surge to $0.1140.
Analysts believe that XLM will soon complete its pullback and make another bullish push above $0.1140. This could initiate a bullish revival, even amidst a broader market pullback.
The market cap of XLM has also seen a 5% surge, totaling $3.082 billion. The coin is currently ranked 28th globally on CoinMarketCap. This increase in market capitalization indicates a trend of recovery, bringing an end to its extensive lower lows spree over the past months.
Furthermore, the 24-hour spot volume has experienced a significant 116% growth on tradeable platforms, amounting to $116.318 million.
There is a growing optimism among investors that XLM is about to leave its accumulation zone soon. Despite its current position, XLM is at significantly discounted levels compared to its all-time high of $0.7978. This makes it an attractive investment option for institutions and smart investors.
Derivatives data analysis also points to a surge in XLM’s metrics, primarily due to an increase in contracts available in the market. Open contracts have surged by more than 25%, with a total OI value of $39.55 million. Additionally, there has been a significant increase of over 220% in the derivatives volume, amounting to $163.18 million.
However, it’s worth noting that there are more long positions than shorts in the market, which could potentially impact the current optimistic sentiment. Investors are advised to conduct their own research (DYOR).
Analyzing the daily chart, there has been a 45% surge in the XLM price from July 5th to July 17th, leading to a breach of the channel’s upper border. This rally was short-lived, and the price experienced a pullback towards the 50-day EMA. This breakout in Stellar has formed another bullish pattern known as a bullish flag pattern.
Several indicators support the bullish sentiment, such as the RSI jumping above the 14-SMA, which currently stands at 58.64. The MACD also indicates a potential bullish cross formation with further bullish candles on the daily chart. If XLM can overcome the 200-day EMA and turn it into support, it could provide additional bullish momentum with higher targets.
Taking into consideration the current sentiment, key resistance levels for XLM would be at $0.1140 and $0.1200. On the other hand, potential support levels for bears to watch would be at $0.0990 and $0.0920, respectively.