[XLM] Can it maintain its recent bullish momentum!

Recently, buyers of Stellar (XLM) have managed to push the price above key resistance levels, showing the potential to maintain its bullish momentum, especially if it can continue to stay above the 200-day EMA (exponential moving average). Here are the key points to watch:

Recent Trends and Technical Analysis XLM recently rebounded from the long-term support of $0.08, and bulls regained the upper hand on the daily chart, helping the price to rise by about 12% in a few days. The current trading price is $0.0982. XLM has broken above the 20-day and 50-day EMAs, which are located near $0.0956 respectively, showing that bulls are still in control.

Key Resistance Levels and Moving Averages With the 20-day and 50-day EMAs merging and moving northward, XLM bulls are expected to push the price further. If the 20-day EMA can find a solid close above the 50-day EMA and continue to move upward, XLM may challenge the 200-day EMA at $0.1027. If it breaks above this level, the next target will be the $0.103 resistance level and then $0.1126.

Meanwhile, XLM has also broken through its long-term trendline resistance (previously the dotted blue line), which has turned into support due to the recent rebound. The RSI (Relative Strength Index) has steadily climbed to 59.15, further reinforcing the bullish sentiment. However, the lower highs in the price action suggest a slight bearish divergence, and a pullback may be expected in the short term.

Potential downside risks If XLM fails to break above the 200-day EMA, or the broader crypto market turns bearish, XLM may pull back to the $0.08 support level.

Signals from the derivatives market XLM's derivatives trading volume surged 36% to $45.44 million in the past 24 hours, and the open interest increased by 3.17%. In addition, the long/short ratio of Binance is 2.0075 and OKX is 1.6, reflecting that buyers are still dominant and the sentiment of major exchanges is bullish.

Conclusion Investors should keep a close eye on the $0.08 support and $0.103 resistance levels. A strong break above the latter could see XLM continue to rise; conversely, a failure to sustain current levels could validate the bearish pattern on the daily chart. Before making any trading decisions, it is recommended to consider both Bitcoin’s trend and the impact of overall macroeconomic factors on the crypto market.