Dec 11, 2024
6thTrade
XLM has stalled after an impressive 279% rally over the past 30 days, testing critical support at the 50% Fibonacci retracement level.
As of writing, Stellar (XLM) was trading at $0.4115, up 0.77% in the last 24 hours, with a low of $0.364 and a high of $0.4384. Despite the strong rally, XLM has faced a loss of momentum recently, still down 55.79% from its all-time high of $0.9381 in January 2018. Bitcoin's slight decline has pressured altcoins like XLM, contributing to its recent pullback.
The 50% Fibonacci retracement at $0.3685 has become a crucial support level for XLM. If the price holds above this level, it could signal a potential reversal, allowing for more bullish momentum. The next key support lies at the 61.8% Fibonacci level around $0.3030.
Should the price bounce from current levels, XLM's upward targets include the swing high at $0.8478 and the 1.0 Fibonacci extension at $1.1687. However, if XLM breaks below the 61.8% level at $0.3851, further declines could occur, flipping the market bias to bearish.
Momentum indicators show a neutral market, with the RSI at 51.42, indicating neither overbought nor oversold conditions. The Awesome Oscillator (AO) suggests weakening bullish momentum, with smaller green bars signaling a decline in upward pressure.
On the 4-hour chart, resistance is seen around $0.4191, with a double-bottom pattern at $0.3500 indicating potential upward momentum if buyers regain control. If bullish sentiment strengthens, XLM could test $0.5000, a key resistance level. However, rejection at $0.4191 or a drop below $0.4000 may prompt a retest of $0.3500 support.
Traders' sentiment is mixed, with the Long/Short Ratio fluctuating around 1, indicating a balance between bullish and bearish positions. This suggests cautious market sentiment and uncertainty in the short term.
XLM's Total Value Locked (TVL) surged in late October 2024, reflecting increased network activity and liquidity. Despite a recent pullback in TVL, the overall trend remains positive, signaling sustained investor interest in XLM’s ecosystem.