Stellar (XLM), the cryptocurrency powering a decentralized global financial network, is currently poised for a potential breakout. A prominent crypto expert has issued a bullish signal, suggesting that XLM could be on the verge of a significant rally, potentially reaching the $0.45 level.
A Buy Signal Emerges: TD Sequential Points to Upward Momentum
The expert, in a recent post on X (formerly Twitter), highlighted the emergence of a buy signal from the TD Sequential, a popular technical indicator. This bullish signal, however, is contingent upon XLM successfully holding the critical $0.33 support level. A breach below this level could trigger a sharp decline, potentially pushing the price down to the $0.22 mark.
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Technical Analysis: A Tightrope Walk at $0.35
XLM has been consolidating within a narrow range between $0.34 and $0.39, hovering near the crucial support level of $0.347. This period of consolidation is crucial in determining the future direction of XLM’s price.
If XLM successfully defends the $0.35 support level, a 25% surge towards the $0.45 level could be on the cards. However, a failure to hold this level could trigger a 33% decline, pushing the price towards the $0.22 support level.
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On-Chain Metrics: A Bullish Undercurrent
The bullish sentiment is further supported by strong on-chain metrics.
- Significant Outflow: Data reveals a significant $6.5 million outflow of XLM from exchanges, indicating increased accumulation by investors.
- Dominant Long Positions: The long/short ratio for XLM on Binance stands at 1.87, with a significant 65.4% of top traders holding long positions. This indicates strong bullish sentiment among professional traders.
Current Price Action: Navigating Volatility
At the time of writing, XLM is trading near $0.358, experiencing a slight 3% decline in the past 24 hours. This minor dip is accompanied by a 19% decrease in trading volume, suggesting reduced participation from traders amid prevailing market uncertainty.
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Conclusion: A Pivotal Moment for XLM
XLM is currently at a critical juncture. The success of holding the $0.35 support level will be crucial in determining its future price trajectory. A successful defense could unleash a powerful rally, potentially propelling XLM towards the $0.45 level. Conversely, a breach below this level could trigger a significant decline, potentially dampening bullish sentiment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments involve significant risks, and readers are encouraged to conduct thorough research and consult with qualified financial professionals before making any investment decisions.
