In Summary
Stellar (XLM) price surged 16%, reclaiming a $13 billion market cap with strong momentum backed by technical indicators.
The RSI at 71.1 remains in overbought territory, indicating strong buying pressure but also signaling a potential correction or pullback.
The Ichimoku Cloud and recent golden cross confirm bullish momentum; XLM must hold the $0.41 support level or risk a 27% correction to $0.31.
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Stellar (XLM) price has surged over 16% in the last 24 hours, reclaiming a $13 billion market cap and showing strong bullish momentum. Technical indicators, including the RSI, Ichimoku Cloud, and EMA ribbons, suggest XLM has the potential for further gains but may encounter resistance ahead.
The RSI remains in overbought territory, indicating heightened buying activity, while the recent Golden Cross and Ichimoku setup point to sustained upward momentum. Critical levels such as the $0.47 resistance and $0.41 support will play a key role in determining whether XLM continues its rally or faces a sharp correction.
RSI Still in Overbought Territory
The Relative Strength Index (RSI) is currently at 71.1, remaining above the overbought threshold of 70 since Jan. 1. This is a significant increase from Dec. 31, when the RSI was at a more neutral level. The high RSI reflects strong buying momentum, which has contributed to XLM’s nearly 16% price surge in the last 24 hours. However, an RSI above 70 also suggests that the asset may be approaching overbought conditions, raising the possibility of a correction or consolidation in the short term.
The RSI is a momentum indicator that measures the speed and magnitude of price movements on a scale of 0 to 100. Readings above 70 indicate overbought conditions, often signaling that a price correction or consolidation may occur, while readings below 30 suggest oversold conditions and the potential for a rebound.
With the RSI at 71.1, this indicator suggests that upward momentum remains strong but the asset is entering a zone where upward movement may become harder to sustain.
Ichimoku Cloud Shows Bullish Momentum
The Ichimoku Cloud chart for Stellar reflects a strong bullish setup, with the price residing above the red cloud. This break above the cloud suggests a decisive shift in momentum, with buyers in control. The green cloud ahead, formed by the Senkou Span A and Senkou Span B, further confirms the bullish sentiment, indicating that the uptrend is likely to continue in the near term.
Furthermore, the green Tenkan-sen (conversion line) has crossed above the orange Kijun-sen (base line), reinforcing the bullish momentum as the short-term price action overcomes the long-term trend. The green Chikou Span (lagging line) sits above both the price and the cloud, indicating that the uptrend is consistent with recent price history.
Overall, the Ichimoku Cloud setup suggests that XLM is in a strong uptrend, with support from technical indicators pointing to the potential for further gains.
XLM Price Prediction: 27% Correction Possible if $0.41 Support Fails
The EMA ribbons recently formed a Golden Cross, a bullish indicator that occurs when a short-term EMA crosses above a long-term EMA. This technical signal suggests the potential for sustained upward momentum. If the current uptrend continues, Stellar price could test the $0.47 resistance level. A successful break above $0.47 could pave the way for further gains, with the next target at $0.50, indicating increasing bullish sentiment
However, if the uptrend loses momentum, XLM price risks breaking below the nearest support level at $0.41. Failure to hold this level could lead to a sharp decline, with the next strong support sitting at $0.31, representing a potential 27% correction.
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