Stellar Surges Another 21% to Enter Top 20 Crypto List, XLM Price Rally to Continue?

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As a seasoned analyst with over a decade of experience in the crypto market, I must admit that the current Stellar (XLM) rally has caught my attention. The 21% surge in just one day and the formation of a bullish “golden cross” on its technical chart is a strong indication of a potential long-term trend reversal for XLM.

As a crypto investor, I’ve noticed that while Bitcoin and most altcoins are consolidating, Stellar (XLM) has been on a roller coaster ride, registering another 21% surge to reach $0.2393. This impressive run has propelled its market cap above $7.16 billion. In just one week, Stellar’s gains have exceeded 118%, placing it among the top 20 cryptocurrencies by market capitalization.

As an analyst, I’ve noticed an impressive surge in XLM, which can be attributed to the formation of a “golden cross” pattern on its technical chart. This bullish signal emerges when the 50-day moving average breaks above the 200-day moving average, signaling a potential upward trend in the price of this cryptocurrency.

Regarding XLM, a recent ‘golden cross’ and surge above significant barriers have resulted in an upward push, taking its price to unprecedented heights not witnessed since March 2022, where it stood at $0.243.

Back in March this year, as Bitcoin soared to hit $74,000, XLM also displayed a similar bullish pattern known as a ‘golden cross’. I had high hopes that this signified a strong upward trend for XLM. Yet, the bulls seemed to lose momentum, and soon enough, a ‘death cross’ followed – a bearish indicator that often signals a downward trend.

In contrast to previous instances, the golden cross symbolizes a significant change in direction following a prolonged phase of stability for prices. Historically, Ripple (XRP) and Stellar Lumens (XLM) have shown a strong relationship in their value trends. Over the weekend, XRP broke through the $1 barrier, reaching a three-year peak. This price surge, driven by favorable regulatory updates and increased whale activity, has also propelled the momentum of XLM’s prices.

Over the past 13 days, the value of Stellar (XLM) has mostly increased due to the US elections and Donald Trump’s win, with it being higher than usual for about eleven out of those thirteen days.

Over the short period, you might encounter resistance levels for XLM around $0.25 and $0.27. If the positive momentum holds up and overcomes these barriers, it could potentially lead to an upward trend reaching targets of $0.44 and even $0.80.

Stellar (XLM) Price On-Chain Indicators

The Open Interest (OI) of XLM has experienced a substantial increase, mirroring an uptick in trading volume. This trend suggests strong bullish sentiment among traders. High OI levels often point to increased capital investments and the creation of new market positions, showing that investors are becoming more confident.

Right now, the Open Interest (OI) for XLM has surged by 46% over the past 24 hours, reaching a staggering $144 million – the highest it’s been since Ripple won a significant legal victory in July 2023, as reported by CoinGlass. If this growth persists, there’s a strong possibility that XLM’s price could soar past the $0.40 threshold.

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.

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2024-11-18 16:16