TLDR:

  • Stellar (XLM) experienced a dramatic price surge of 32% this week, pushing its market cap above $13 billion and reaching $0.45 per token

  • Technical indicators show strong bullish momentum with RSI at 71.1 in the overbought zone and a recent golden cross formation

  • On-chain metrics reveal increasing activity with Open Interest rising from $126.86M to $274.11M and Total Value Locked growing from $44.95M to $54.59M

  • Price analysis suggests potential for 40% upside to $0.63 if momentum continues, with key support at $0.41

  • Current technical setup indicates risk of 27% correction to $0.31 if support levels fail to hold

The Stellar (XLM) token has recorded a remarkable price surge this week, climbing more than 32% to trade above $0.45 on Friday. This upward movement has pushed the cryptocurrency’s market capitalization above $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 increased by 27%, with momentum continuing into Friday’s trading session. The token has maintained its upward trajectory, adding another 4% to its value.

Trading activity data reveals substantial growth in market participation. According to Coinglass, the futures Open Interest for XLM has more than doubled, rising from $126.86 million on Wednesday to $274.11 million by Friday.

This level of Open Interest hasn’t been seen since December 10, 2024, suggesting increased trader engagement and new capital flowing into the market.

The ecosystem’s Total Value Locked (TVL) has also shown steady growth since late December 2024. Data from DefiLlama indicates that TVL increased from $44.95 million on Tuesday to $54.59 million by 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) currently reads at 71.1, remaining above the overbought threshold of 70 since January 1. While this suggests strong buying momentum, it also indicates that the asset may be due for a consolidation phase.

The Moving Average Convergence Divergence (MACD) on the daily chart shows a bullish crossover that occurred on Tuesday, with the MACD line crossing above the signal line. This technical signal typically suggests the potential for continued upward movement.

Adding to the positive technical setup, the Ichimoku Cloud analysis shows XLM’s price positioned well above the red cloud, with a green cloud formation ahead. The conversion line (Tenkan-sen) has crossed above the baseline (Kijun-sen), further confirming the bullish momentum.

A recent golden cross formation, where the shorter-term Exponential Moving Average (EMA) crosses above the longer-term EMA, provides additional support for the bullish case. This technical pattern often precedes extended upward trends.

Price analysis suggests that if XLM maintains its current trajectory, it could target its November 24, 2024 high of $0.63, representing a potential 40% gain from current levels. The immediate resistance level stands at $0.47, with $0.50 serving as the next key target.

However, traders should note the presence of key support levels. The nearest support sits at $0.41, and a break below this level could trigger a correction. If this support fails to hold, XLM might test the next strong support at $0.31, representing a potential 27% decline.

The 100-day Exponential Moving Average (EMA) at $0.29 serves as an additional support level. A daily close below $0.31 would invalidate 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 rising TVL suggests increased user adoption and utilization of XLM-based protocols, while the surge in Open Interest indicates strong trader engagement.

The price movement has been accompanied by increased trading volume across major exchanges, providing additional validation for the rally. This combination of rising volume and growing Open Interest typically suggests a healthy trend.

Looking at hourly data, XLM’s trading patterns show consistent buying pressure with higher lows forming on shorter timeframes. This indicates steady accumulation rather than speculative buying spikes.

The token’s performance comes as broader market conditions show signs of improvement, though XLM’s gains have outpaced many of its peers in the cryptocurrency market.

The post Stellar (XLM) Price: Records 32% Weekly Gain as Market Cap Tops $13 Billion appeared first on Blockonomi.