After a spectacular surge of over 109%, Stellar (XLM) initiates a correction. Is this a mere technical breather or the start of a trend reversal ? With bearish indicators and crucial support in play, the market holds its breath.
Stellar (XLM) recently reached its highest level since January 2025 before taking a pause. A bearish divergence pattern has formed on the 4-hour chart, signaling overbought market conditions. Despite this correction, the market sentiment for Stellar and other cryptocurrencies remains optimistic, supported by Bitcoin operating in price discovery mode and a strong bullish conviction. Ethereum, the leader in the altcoin market, is also set to continue its upward trajectory, with signs indicating a possible return to its all-time high.
The weekly chart of XLM shows a clearly bullish structure, with key support and resistance levels. The recent rally, which started at $0.216 and reached $0.516, has sparked interest among traders. A slight correction could bring XLM back to the demand zone at $0.364, potentially offering a buying opportunity. Technical indicators, such as the Accumulation/Distribution indicator (A/D) and the Chaikin Money Flow (CMF), reflect intense demand in recent days.
Traders must manage their risk carefully, taking into account liquidity levels and possible trend reversal zones. It is advisable to wait for a potential correction towards the $0.364 zone before considering new purchases, while closely monitoring market signals.
In conclusion, the rise of Stellar (XLM) and the current cryptocurrency market context offer interesting trading opportunities for informed investors. Stay informed, exercise discernment, and adapt your strategy according to market developments.
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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