Stellar （XLM） has exhibited a significant breakout, indicating a potential rally. The token has risen over 12%, breaking through key resistance levels and attracting optimistic traders.
Points
- Stellar （XLM） experiences a 12% price increase and a crucial breakout.
- Key resistance levels have been breached, suggesting potential for further gains.
- Technical indicators and social dominance metrics show bullish sentiment.
- XLM’s development activity and market performance indicate long-term growth prospects.
The Stellar token has exhibited an impressive rise of over 12% and registered a much-awaited breakout in the last hours. For the past few weeks, the XLM token price has traded under a bearish influence and has continued to drop in gains, reaching the 52-week low mark of $0.0770 last week.
From there, buyers defended the zone and began accumulation, resulting in a notable recovery of over 25% this week. The buyers have also succeeded in splitting out the downward-sloping trendline hurdle of $0.1000. Interestingly, the token splashed multiple clusters in a single shot over 12% and retested the 100-day EMA mark with a sharp spike in buying volume over 105%.
This gigantic rise trapped the seller army, and the token could register a massive up move ahead. Once it decisively sustains above the $0.1000 mark for one or more trading sessions, a short covering move might help the token to sprint ahead.
At press time, the pair of XLM/BTC was at 0.00000172 BTC, and the market cap was $2.04 Billion. Analysts looked neutral and suggested that the XLM price may extend the rally and could drive the up move ahead. Ranked at 49 in terms of market cap, the token has a total supply of 50 billion, while the circulating supply was 20.21 billion.
The MACD indicator saw a bullish crossover and plotted the green bars on the histogram, indicating a potential breakout rally ahead. As the token registered a breakout, its holders were molding their vision on it, and a notable rise of over 12% in the social dominance curve was spotted, which implies that holders have begun to chatter about XLM.
Meanwhile, the development activity showed a constant rise and held above the halfway region, conveying the growth prospects were intact for the long term. In his Tweet, @Lumen said that Stellar has reached its demand zone and shared his bullish view.
Stellar is most bullish long term project in the entire space （my opinion）
Stellar is more than a crypto it’s a global monetary system that’s about to change the world and you have the chance to buy under 10 cents.
Liquidity Chart Source: Coinglass
Following the channel breakout, the seller army looked trapped and had covered their positions. At the time of writing, the short liquidations noted a rise to $195k, while the long liquidations stood at $39k. This liquidity data hints that traders have a bet to go long and anticipate a rise ahead.
The immediate support levels for the XLM token are $0.0950 and $0.0900, whereas the key upside hurdle is around $0.1090, followed by $0.1180.
Explanation
- Stellar’s price breakout indicates potential for a significant rally.
- Technical indicators such as MACD and social dominance show bullish sentiment.
- Key resistance levels have been breached, suggesting further gains.
- Development activity and market performance indicate long-term growth prospects for XLM.
- Market sentiment is positive, with traders and holders showing optimism.