Stellar Experiences 10% Upsurge Today, Yet Stiff Opposition Anticipated for XLM Value in the Near Future
XLM's revived vigor is evident as it surges by a massive 10% in the last 24 hours and a staggering 25% in the past 30 days. Even though it's yet to breach the $0.30 mark since March 2, the coin's relentless pursuit continues.
Recent technical signals, such as a drastic increase in RSI, a favorable shift in CMF, and a potential golden cross, have traders buzzing with anticipation. As the bullish tide swells, XLM faces a make-or-break moment at the $0.279 resistance zone.
RSI Soars: Is XLM on the Brink of a Breakout?
Stellar's RSI has soared to an impressive 62.21, a stark contrast from its previous reading of 31.47 just two days ago. This steep rise is a clear sign of escalating buying momentum, as XLM rebounded from the oversold territory.
Such a move often heralds a shift in sentiment, with traders flocking back to the asset after patches of weakness. If this trend persists, XLM could be on the verge of a powerful bullish breakout.
The RSI serves as a technical indicator to gauge the speed and direction of price movements. It ranges from 0 to 100, with values under 30 considered oversold, and values over 70 regarded as overbought. A reading between 50 and 70 typically indicates growing bullish momentum. With the RSI now at 62.21, XLM is gaining strength but still has room to surge before hitting overbought levels.
This suggests there might be more upside potential if buyers keep stepping in, though it's essential to remain vigilant for signs of exhaustion as the RSI approaches 70.
CMF Turns Positive, Yet Buying Pressure Remains Cautious
Stellar's Chaikin Money Flow (CMF) currently stands at 0.04, rebounding from -0.32 just three days ago. This rebound to positive territory indicates a short-term shift toward buying pressure, though it has retreated slightly from 0.08 earlier today.
While the uptick is encouraging, the CMF hasn't breached the key 0.10 level since April 28, suggesting that substantial capital inflows are still in short supply for now.
The CMF measures the volume-weighted flow of money into and out of an asset over a set period. It ranges from -1 to +1, with values above 0 indicative of buying pressure, and values below 0 signaling selling pressure. A CMF reading above 0.10 typically confirms strong accumulation, while readings near zero reflect indecision or weakness.
With XLM's CMF at 0.04, the market shows early signs of accumulation, but not enough to confirm a robust bullish trend. To achieve further upside, XLM would likely need to see stronger capital inflows, with CMF pushing consistently above 0.10.
XLM Aims for Breakout as Golden Cross Looms
Currently, XLM trades in a narrow range between resistance at $0.279 and support at $0.267. Its EMA lines are converging, suggesting a possible golden cross formation—a bullish signal that occurs when the short-term EMA crosses above the long-term one.
If XLM breaks above $0.279, it could rally toward $0.30, with additional upside targets at $0.349 and $0.375. If bullish momentum remains robust, a move to $0.443 is also within reach. Conversely, if the breakout falters, XLM could slide back to $0.267 support. A breakdown below that level could expose the token to $0.25, followed by $0.239 and $0.230.
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Past the technicals, concerns about the concentration of supply persist. Analysis reveals that the top 10 XLM wallets hold nearly 80% of the circulating supply, with Binance's XLM balance growing from 180 million to 1 billion since late 2023. This heightened supply concentration could exacerbate market volatility if key holders decide to sell.
However, adoption is growing. Stellar's tokenized real-world asset (RWA) market has spiraled 84% in 2025, with industry biggies like Franklin Templeton and Circle contributing over $500 million in on-chain value.
[1] When RSI Soars Over 60, the Cryptocurrency Market Goes Wild. (2022, February 21). CoinQuora. https://coinquora.com/when-rsi-soars-over-60-the-cryptocurrency-market-goes-wild/
[2] What Happens when the RSI Meets 30 and Crosses to 70?. (2022, January 6). CoinGyaan. https://coingyaan.com/what-happens-when-the-rsi-meets-30-and-crosses-to-70/
[3] Reading RSI Values in Cryptocurrency Trading (2022, August 1). Investopedia. https://www.investopedia.com/terms/r/rsi.asp
- XLM's RSI soaring to 62.21 indicates a surge in buying momentum, suggesting a potential bullish breakout could be imminent.
- Despite the positive shift in Stellar's CMF to 0.04, a significant increase in capital inflows is still needed to confirm strong accumulation and a robust bullish trend.
- If XLM breaks through the $0.279 resistance, a golden cross formation could occur, potentially leading to a rally toward $0.30 and beyond.
- Careful consideration is needed concerning the high concentration of XLM supply, as the top 10 wallets hold nearly 80% of the circulating supply.
- Despite supply concerns, the adoption of Stellar's tokenized real-world asset market has grown significantly, with industry leaders like Franklin Templeton and Circle contributing over $500 million in on-chain value.
- As bullish momentum builds, it's essential to remain vigilant for signs of market exhaustion as the RSI approaches 70 and explores technical indicators like RSI, CMF, and EMAs to guide trading decisions.
- The rebounding XLM presents an opportunity for traders to delve into its potential and discover the strengths of this altcoin and the technology underlying it, joining platforms like Uphold that support various assets, making it easier to traverse the ever-evolving cryptocurrency market.
