Stellar (XLM) Price Eyes Rally To $1 As $0.3850 Support Holds Firm

• XLM price could soar to $1 if it holds the $0.3850 support level.
• XLM breaks out of a falling wedge, signaling strong bullish momentum.

XLM, the native token of Stellar, has broken out of the falling wedge pattern and is primed for a significant upsurge.

Amidst the broader market selloff, XLM price lost significant gains and retested the 20 day EMA support mark. However, the uptrend was intact and the XLM coin was still traded in a bullish bias, with support staying at $0.3850.

Until the support zone is breached, XLM crypto will stay under the bulls’ grip. Additionally, further upside can be anticipated.

At press time, XLM price was trading at $0.4010, noting a decline of over 5.90% in the past 24 hours. Its market cap has fallen to $12.15 Billion, ranked 16th in the overall crypto market.

XLM Price Poised for $1: Here’s What Experts are Saying

A recent tweet by Rose Premium Signals on X highlights that, XLM crypto produced a falling wedge pattern breakout and is heading to retest the 50% Fibonacci support zone. Once that retest is complete, it could see a rebound and may surge higher.

The short term targets of $0.60 and $0.80 can be seen ahead. Sustaining above $0.80 could send XLM coin towards $1 in the next few weeks.

However, the sentiment across the cryptocurrency landscape was shown a shift which points to concern that the breakout could be sustainable or not.

As of now, positive price action was noted and it defended the 20 day EMA mark. Amidst the low trading volume activity, XLM coin was indulged in a sideways movement and hovers around the $0.4000 mark.

Based on historical momentum, if XLM price closes a daily candle above the previous week high of $0.4800, there is a strong possibility that it could soar by 30% to revisit the 52 week high levels soon.

XRP Coin Technical Analysis: Key Levels to Watch

On the daily timeframe, XLM price is sustaining above the key EMAs and shows a bullish trend. It forms a bullish flag pattern and could head toward the 52 week high zone soon.

Its Relative Strength Index (RSI) is close to the 50 threshold, representing a neutral outlook.

Meanwhile, the On-balance Volume (OBV) showed a steady rise and was at peak, which reflected sustained accumulation from investors. This could fuel the next bullish leg ahead.

In addition to the technical analysis, XLM’s on-chain analysis further supports the bullish outlook. On major exchanges, an equal dominance between long contracts and short contracts was noted. This means that XLM bulls were looking to carry the gains ahead.

However, the Open Interest (OI) shed over 5.20% alongside the price decline, which highlights a minor decline in long positions.

Meanwhile, the OI-weighted funding rate still showcased the demand for the long contracts, as it holds above the midline at 0.0081%.

The immediate support zones were $0.3850 and $0.3600, whereas the resistance levels were $0.4200 and $0.4360.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.