Stellar Lumens (XLM) has skyrocketed 25% in recent days, pushing its price to $0.2393 and its market cap beyond $7.16 billion. This surge has catapulted XLM into the top 20 cryptocurrencies by market capitalization. The weekly gains for XLM now exceed a staggering 118%, prompting questions about the sustainability of this bullish trend.
Stellar $XLM is AGAIN massively outperforming $XRP today
— Noaty (@noaty343) November 18, 2024
This is why I did the debate with @xrpmickle even if at the time Stellar looked like a “dead chain” it didn’t matter… I knew the fundamentals. pic.twitter.com/1qiZkKGR1d
Golden Cross Fuels XLM’s Bullish Momentum
The recent price surge for XLM can be attributed to the formation of a golden cross on its chart. A golden cross occurs when the 50-day moving average crosses above the 200-day moving average, signaling a potential bullish trend. This pattern emerged just as XLM broke through crucial resistance levels.
The price of XLM has reached $0.243, a level not seen since March 2022. While a similar golden cross earlier this year was followed by a swift reversal, the current bullish momentum appears stronger. The recent surge in XRP’s price past $1 has also contributed to XLM’s upward trajectory.
Rising Open Interest and Potential Challenges for XLM
On-chain data for XLM reveals strong bullish sentiment. The Open Interest (OI) for XLM has surged 46% in the past 24 hours, reaching $144 million. This increase indicates growing market confidence and the establishment of new positions. If this momentum persists, XLM could potentially push past the $0.40 mark.
However, a decline in daily trading volumes could signal a potential slowdown in the rally. A 30% decrease in trading volume suggests waning interest from traders.
Also Read: Stellar (XLM) Liquidation Levels – A Double-Edged Sword For Traders
To sustain its upward momentum, XLM must break through resistance levels at $0.25 and $0.27. If successful, the price could potentially rise further, reaching $0.44 and even $0.80. The key to XLM’s future trajectory lies in the ability of the current bullish momentum to hold in the coming days.
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.
About The Author
