Stellar (XLM) is currently exhibiting mixed signals as its price consolidates within a bullish flag pattern on the daily chart. At press time, XLM was trading at $0.3410, marking a slight 0.5% decline, with trading volume dropping by 10.61%. Despite this short-term weakness, network growth and rising Total Value Locked (TVL) since late 2024 could set the stage for a potential breakout.
XLM’s Technical Setup: A Bullish Continuation?
XLM is forming a classic bull flag pattern, which typically signals a continuation of its prior bullish momentum. The altcoin faces a key resistance zone between $0.35 and $0.40, while the $0.28-$0.30 range has acted as a strong support level.
According to crypto analyst Solberg Invest on X (formerly Twitter), if XLM experiences increased buying pressure, it could break past the $0.40 resistance and aim for the $0.51 level—a significant previous resistance point. However, the consolidation phase suggests that traders remain cautious, awaiting a definitive breakout.
$XLM is setting up a bull flag breakout
— Solberg Invest (@SolbergInvest) February 19, 2025
If confirmed, $0.51 is the next stop! 🚀 pic.twitter.com/WV4BcQfpPd
Market Sentiment and On-Chain Metrics
Despite XLM’s price consolidation, on-chain data reveals a positive long-term outlook. Stellar’s network accounts and TVL have steadily grown since late 2024, signaling increasing adoption and utility.
The 200-day Exponential Moving Average (EMA) at $0.2428 remains well below the current price, reinforcing XLM’s long-term strength. Additionally, the 24-hour Long-Short Ratio stood at 2.31 and has climbed to 2.41 in the 4-hour timeframe, indicating growing investor confidence in the asset.
What’s Next for XLM?
XLM’s monthly oscillator summary points to a “buy” signal despite a 2.63% decline in Open Interest over the last 24 hours, per Coinalyze data. Furthermore, the Relative Strength Index (RSI) has increased from 44.93 to 53.15 in the 4-hour timeframe, suggesting potential accumulation.
Also Read: TD Sequential Flashes Sell Signal on Stellar (XLM) – Should Traders Be Worried?
A decisive breakout above $0.40, backed by strong buying pressure, could push XLM toward the $0.51 resistance level. However, failure to breach this threshold may result in continued consolidation within the $0.28-$0.35 range. Investors should closely monitor XLM’s buying pressure, trading volume, and price action for confirmation of its next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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