Stellar (XLM) price has surged over 16% in the past 24 hours, reclaiming its $13 billion market cap and indicating strong bullish momentum. Technical indicators including the RSI, Ichimoku Cloud, and EMA lines suggest that XLM is poised for additional gains but faces potential resistance ahead.
The RSI remains in the overbought zone, highlighting increased buying activity, while the recent golden crossover setup indicates continued bullish momentum. Key levels like the $0.47 resistance and $0.41 support will play crucial roles in determining whether XLM will continue its upward trajectory or face a sharp correction.
Stellar RSI is still in overbought zone
Stellar’s Relative Strength Index (RSI) is currently at 71.1, remaining above the overbought threshold of 70 since January 1. This represents a significant increase from December 31, when the RSI was in a more neutral zone. A rising RSI reflects strong buying momentum, which has contributed to XLM’s price rally of nearly 16% in the past 24 hours.
However, an RSI above 70 also suggests that the asset may be approaching overbought conditions, increasing the likelihood of a pullback or consolidation in the near term.
The Relative Strength Index is a momentum indicator that measures the speed and strength of price movements on a scale of 0 to 100. Readings above 70 indicate overbought conditions, which often indicate that a price correction or consolidation may follow, while readings below 30 indicate oversold conditions and a possible recovery.
With the XLM RSI at 71.1, the indicator indicates that the bullish momentum is still strong but the asset is entering an area where the upward move may become more difficult to continue.
Ichimoku Cloud Shows Bullish Momentum
Stellar’s Ichimoku Cloud chart reflects a strong bullish setup, with the price positioned well above the red cloud. This bullish breakout from the cloud signals a decisive shift in momentum, with buyers firmly in control.
The upcoming green cloud, formed by Senkou Span A and Senkou Span B, confirms the bullish sentiment, indicating a continuation of the uptrend in the near term.
Additionally, the blue conversion line (Tenkan-sen) crossed above the orange baseline (Kijun-sen), reinforcing bullish momentum as short-term price action outperforms the long-term trend. The lagging green line (Chikou Span) indicates that the uptrend is consistent with recent price history as it is above both price and cloud.
The Ichimoku Cloud setup suggests that XLM is in a strong uptrend, with support from technical indicators pointing to potential additional gains.
XLM Price Prediction: Possible 27% Correction if $0.41 Support Fails
Stellar's EMA lines recently formed a golden cross, a bullish indicator that occurs when the short-term EMA crosses above the long-term EMA.
This technical signal suggests that the bullish momentum could continue. If the current uptrend continues, Stellar price could test the resistance level at $0.47. A successful break above $0.47 could pave the way for additional gains, with the next target at $0.50, indicating a growing bullish sentiment.
However, if the uptrend loses momentum, XLM price is at risk of falling below the nearest support at $0.41. Failure to hold this level could lead to a sharp decline, with the next strong support at $0.31 representing a potential 27% retracement.