- Stellar has settled above former crucial resistance at $0.465, currently the immediate support.
- Closing the day above the key levels will set XLM on a trajectory to all-time highs.
- The RSI's negative divergence suggests that a correction could be in the cards.
Stellar appears to have cooled off the rally after breaking above the crucial April 2018 hurdle at $0.465. A multi-year high has recently been established at $0.61, but bulls lost steam. The bulls aim to hold above the resistance turned support at $0.465 and plan for another attack mission to the record highs of $1.05.
Stellar is only 125% to the all-time high
The progress XLM has made in the ongoing bull run is tremendous, making the remaining journey to $1.05 a near-term goal. The cross-border token is dancing at $0.5 amid the push by the bulls to secure higher support.
The Moving Average Convergence Divergence (MACD), a trend direction indicator, shows that Stellar is generally moving upward despite the current snarl-up. This technical indicator is used to correctly identify positions where traders can enter or exit the market. Currently, the wide divergence made by the MACD line (blue) above the signal line hints at the bullish outlook remaining intact.
XLM/USD weekly chart
The Parabolic SAR points confirm buyers are in control. This indicator shows that the trend is bullish when the parabolas (dots) are below the price. Moreover, closing the day above $0.5 will add credence to the bullish momentum and perhaps call out more buyers to join the market.
XLM/USD daily chart
Looking at the other side of the fence
The Relative Strength Index (RSI) has a negative divergence on the 4-hour chart. A bearish divergence occurs when an asset's price is generally trending upwards while the RSSI moves downwards.
XLM/USD 4-hour chart
The negative divergence could mean that Stellar is nearing a tipping point, and correction will come into play. The trend reversal will be confirmed when the price breaks below the trendline or crucial support such as $0.5 and $0.465.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.