Stellar Lumens surges 21%, entering the top 20 cryptocurrencies with a market cap of $7.16 billion.
A golden cross and XRP’s rally boost XLM, signaling strong bullish momentum.
Rising Open Interest suggests growing investor confidence, but declining volume raises concerns about sustainability.
As of writing, Stellar Lumens had surged by 25%, pushing the price to $0.2393. The market cap now exceeds $7.16 billion, sending XLM into the top 20 cryptocurrencies. This rally has extended Stellar’s weekly gains to more than 118%. With the price hitting multi-year highs, many are asking whether this surge will continue.
https://twitter.com/noaty343/status/1858474935166919027?t=mPg3FYaLzLawKHTFu8Y8KQ&s=19 Golden Cross Sparks Bullish Momentum for XLM
XLM’s recent price surge follows the formation of a golden cross on the chart. A golden cross occurs when the 50-day moving average crosses above the 200-day moving average. This is typically seen as a strong bullish signal. For XLM, this pattern happened just as the price broke through key resistance levels.
The price reached $0.243, a level not seen since March 2022. Earlier this year, a similar golden cross was followed by a quick reversal. However, this time, the bullish momentum appears stronger. XRP’s recent surge past $1 has also helped fuel XLM’s rise.
Rising Open Interest and Potential Hurdles for XLM
XLM’s on-chain data show strong bullish sentiment. The Open Interest (OI) for XLM has surged 46% in 24 hours, reaching $144 million. This rise indicates increased market confidence and new positions being established. If this momentum continues, XLM could push past $0.40.
However, a drop in daily trading volumes could signal caution. Trading volume fell by 30%, suggesting the rally might be losing steam. This slowdown could indicate waning interest from traders.
For XLM to maintain upward momentum, resistance at $0.25 and $0.27 needs to be broken. If that happens, the price could rise further, potentially reaching $0.44 and even $0.80. The key will be whether the bullish momentum holds in the coming days.
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