- Stellar price gains 7%, with bullish momentum pushing towards a potential breakout at $0.52.
- Key support for XLM at $0.40 resistance at $0.419 could lead to further gains.
- Slowing momentum and volume decline raise caution for XLM short-term trend.
Stellar price is up by 7% and has shown signs of a bullish breakout that would peak at $0.52. Nevertheless, decelerating pace and diminishing volume pose concerns, as a consolidation period or a retracement can ensue. Key resistance at 0.419 and support at 0.40 will be pivotal in whether XLM will maintain its momentum.
Stellar price Technical Analysis Shows Bullish Trend with Caution
Stellar price is currently trading at 0.410437 and has gained 2.17% over the last 4 hours. Moving Average Convergence Divergence (MACD) is in a bullish position and the Relative Strength Index (RSI) of 55.55 indicates that it has additional gains. Although volume has been strong, any deterioration may indicate momentum loss.
The short-term point of resistance is at $0.419 and the support can be found at $0.40. A decline below 0.40 will likely lead to the retracement to around 0.36, so watch the levels of volume and prices.
Source: Tradingview
A break to the upper side of 0.419 will drive XLM price to the higher side, but in case of the inability to hold the positions, it will reveal the reverse turnaround. It will also be important to track key support and resistance to ascertain whether uptrend can be extended or retracement has been established.
Market Sentiment Points to Bearish Continuation for XLM price
The XLM market exhibits bearish continuation, despite the bullish prospects. The volume has declined by 9.59%, to 798.06 million, indicating low participation, and open interest fell 3.91% as well.
The ratio of 0.8692 between long and short suggests that more traders see a downturn, but the ratio of 1.79 on Binance indicates that retail traders remain long, which is a sign of a volatile market.
Source: Coinglass
Moreover, long liquidations exceeded short liquidations by a large margin, $936.66K and $165.37K within the last 24 hours, with long traders under pressure. The fading volume and open interest combined with liquidations indicate the fading bullish pressure and signals additional downside risk
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