A Strategic Accumulation on Stellar ?
The recent Stellar rally has been supported by a notable increase in stablecoin supply on the Stellar network and open interest in futures contracts. This momentum propelled XLM to its highest level since January. Although the price has since corrected by approximately 10%, the $0.33 level that long served as resistance now acts as solid support.
As long as XLM remains above this zone, the bullish structure is preserved. Technical indicators also suggest a cautiously positive outlook, with the RSI cooling down from an overbought level. It also remains above the 20-day moving average.
What Can We Expect from XLM This Week ?
If buying pressure persists, XLM could aim to reclaim the $0.52 level and challenge January’s peak of $0.64. This would offer upside potential of 52% from current levels. However, a break below the 20-day moving average could indicate a deeper correction.
In conclusion, although the XLM rally has paused, the technical structure remains bullish as long as the price maintains above the key support level of $0.33. Investors will closely monitor price action in the coming weeks to evaluate investment opportunities in this cryptocurrency.
