TLDR:
- Stellar (XLM) experienced a dramatic 32% price increase this week, pushing its market cap to over $13 billion and reaching $0.45 per token
- Technical indicators show strong bullish momentum with an RSI of 71.1 in overbought territory and a current Golden Cross formation
- On-chain metrics show increasing activity: Open Interest increased from $126.86 million to $274.11 million and Total Value Locked increased from $44.95 million to $54.59 million
- Price analysis suggests a potential for a 40% increase to $0.63 if momentum continues, with key support at $0.41
- The current technical setup points to a risk of a 27% correction to $0.31 if support levels are not held
The Stellar (XLM) token saw a notable price increase this week, rising more than 32% and trading above $0.45 on Friday. This bullish move has pushed the cryptocurrency’s market cap to over $13 billion, marking one of its strongest performances in recent months.
The rally began earlier this week when XLM found support around the $0.31 level on Monday. Over the next three days, the price rose 27%, with momentum continuing into Friday’s trading session. The token has maintained its upward trend and increased its value by another 4%.
Trading activity data shows significant growth in market participation. According to Coinglass, XLM futures open interest more than doubled, rising from $126.86 million on Wednesday to $274.11 million on Friday.
This level of open interest has not been seen since December 10, 2024, indicating increased trader engagement and the inflow of new capital into the market.
XLM price
The ecosystem’s Total Value Locked (TVL) has also recorded steady growth since the end of December 2024. Data from DefiLlama suggests that TVL increased from $44.95 million on Tuesday to $54.59 million on Friday, reflecting growing activity within Stellar-based protocols and increased user engagement.
Technical indicators paint a bullish picture for XLM. The Relative Strength Index (RSI) is currently at 71.1 and has remained above the overbought threshold of 70 since January 1. While this indicates strong buying momentum, it also suggests that the asset may be facing a period of consolidation.
The Moving Average Convergence Divergence (MACD) on the daily chart shows a bullish crossover that occurred on Tuesday, with the MACD line crossing the signal line. This technical signal typically indicates the potential for further upward movement.
In addition to the positive technical setup, Ichimoku Cloud analysis shows that XLM price is well above the red cloud and a green cloud formation is imminent. The conversion line (Tenkan-sen) has crossed the baseline (Kijun-sen), further confirming the bullish momentum.
A recent golden cross formation where the short-term exponential moving average (EMA) crosses the longer-term EMA provides additional support for the uptrend. This technical pattern often precedes extended uptrends.
Price analysis suggests that if XLM maintains its current price, it could target its November 24, 2024 high of $0.63, representing a potential 40% increase from current levels. Immediate resistance lies at $0.47, with $0.50 serving as the next key target.
However, traders should note the presence of key support levels. The next support is at $0.41 and a break below this level could trigger a correction. Should this support fail to hold, XLM could test the next strong support at $0.31, representing a possible 27% decline.
The 100-day EMA (Exponential Moving Average) at $0.29 serves as additional support level. A daily close below $0.31 would negate the current bullish outlook and potentially lead to a test of this moving average.
On-chain metrics continue to show growing interest in the Stellar ecosystem. The increasing TVL indicates increased user adoption and usage of XLM-based protocols, while the increase in open interest indicates strong trader engagement.
The price movement was accompanied by increased trading volume on major exchanges, further confirming the rally. This combination of increasing volume and growing open interest typically indicates a healthy trend.
Looking at the hourly data, XLM’s trading patterns show sustained buying pressure, with higher lows forming on shorter time frames. This suggests steady accumulation rather than speculative buying spikes.
The token’s performance comes at a time when broader market conditions are showing signs of improvement, although XLM’s gains have outperformed many of its cryptocurrency market peers.
