$XLM Analysis: Will There Be a Breakout of Strong Resistance

Stellar (XLM) price has increased by more than 16% in the past 24 hours, reclaiming a $13 billion market cap and showing strong bullish momentum. Technical indicators, including the RSI, Ichimoku Cloud, and EMAs, suggest that XLM has room to rise further but may face resistance ahead.

The RSI remains in overbought territory, indicating increased buying activity, while the recent Golden Cross and Ichimoku setup point to sustained bullish momentum. Key levels such as the $0.47 resistance and $0.41 support will play a key role in determining whether XLM continues to rise or faces a sharp correction.

The Relative Strength Index (RSI) is currently at 71.1, remaining above the overbought level of 70 since January 1. This is a significant increase from December 31, when the RSI was more neutral. The high RSI reflects strong buying momentum, which has contributed to the nearly 16% increase in XLM price in the past 24 hours. However, the RSI above 70 also suggests that the asset may be approaching overbought conditions, increasing the possibility of a correction or consolidation in the short term.

The EMA 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 is likely to continue. If the current uptrend continues, Stellar price could test the $0.47 resistance level. A successful breakout above $0.47 could open the way for further gains, with the next target at $0.50, indicating that bullish sentiment is growing. #writetoearn