Stellar blockchain, renowned for powering cross-border payments, concluded its Meridian 2024 conference in London from October 15-17, spotlighting new partnerships and developments. Despite collaborations with MoneyGram, Paxos, and others, the event triggered only a modest 8% rise in Stellar’s native token, XLM, leaving many investors wondering: Can XLM break free from its tight price range?
XLM’s Stuck Price Range And 50-Day EMA Dynamics
Since August’s sell-off, XLM has remained in a narrow range between $0.09 and $0.10, with $0.10 serving as a local supply zone. This area has become a resistance point, marked by increased selling pressure, preventing a stronger breakout.
However, the good news for bulls came as XLM reclaimed the 50-day Exponential Moving Average (EMA). Historically, the token hovered near this dynamic support in September before eventually surging toward the $0.10 mark. If the same pattern repeats, XLM could extend its October recovery and aim for an 11% gain, keeping hopes alive for a breakout.
Further boosting bullish sentiment, the Relative Strength Index (RSI) is pointing north, suggesting growing buying momentum. However, the On-Balance Volume (OBV) remains below its September peak, indicating that strong buying demand is yet to kick in.
Stellar’s Event Impact – Did Meridian 2024 Boost XLM?
The Meridian 2024 conference did ignite a wave of optimism in both spot and futures markets. Following the event, Cumulative Volume Delta (CVD) spiked, highlighting increased spot market demand. Simultaneously, open interest in XLM futures jumped from $123 million to $132 million, suggesting heightened speculation among investors betting on future price action.
Despite this renewed interest, the market remains cautious. The liquidation heatmap reveals large long positions around $0.094, aligning with the 50-day EMA. This level could act as short-term support if buyers defend it. However, increasing short positions at $0.098 and $0.10 signal that resistance remains high, making these key levels to watch closely.
What’s Next for XLM?
For XLM to break out of its consolidation range, it needs sustained bullish momentum. While reclaiming the 50-day EMA and rising RSI point toward recovery, the low OBV suggests the rally could still fizzle if buying pressure doesn’t build. Investors should also keep an eye on $0.10—a critical barrier that must be breached for XLM to continue its upward march.
Also Read: Stellar and Mastercard Team Up to Streamline Crypto Transactions and Boost Blockchain Adoption
With increased market interest post-Meridian 2024, XLM might be gearing up for a stronger push. But until bullish sentiment strengthens, the token could remain trapped within its current range, offering only short-term trading opportunities.
By carefully tracking support at $0.094 and resistance near $0.10, traders can better position themselves for Stellar’s next move. Will XLM’s October momentum be enough to break through the supply zone, or will resistance at $0.10 hold firm? The coming weeks will likely reveal the answer.
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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