Executive Summary
The cryptocurrency Stellar (XLM) has exhibited a notable upward trajectory, trading at approximately $0.24 after a commendable 2% increase within the last 24 hours. This performance coincides with the Stellar blockchain achieving a new all-time high in Total Value Locked (TVL), thereby signaling a burgeoning interest within its ecosystem.
Stellar’s Total Value Locked Surges to New Heights
Recent data indicates that XLM has experienced a significant appreciation, accruing an additional 2% in value over the past day, thus positioning itself above the $0.24 threshold. This upward momentum follows an impressive 10% increase observed over the preceding two days.
The catalyst for this positive market performance appears to be the remarkable ascent of Stellar’s Total Value Locked (TVL), which has achieved an unprecedented high of $169.30 million as reported by DefiLlama. This milestone suggests an increasing level of engagement and activity within the Stellar ecosystem, characterized by a rise in user deposits and asset utilization across XLM-centric protocols.
Furthermore, corroborating evidence from CryptoQuant highlights a favorable outlook for XLM, as data reveals substantial whale orders and a dominance of buying pressure within both spot and futures markets. These indicators collectively suggest the potential for a forthcoming price rally.
Short-term Price Analysis: Targeting $0.28
An examination of the XLM/USD 4-hour chart reveals a predominantly bearish yet efficient trading environment, with Stellar Lumen having accrued over 2% in value in the last 24 hours alone. The cryptocurrency has found robust support around the weekly support level of $0.221, established on Friday, and has since experienced an impressive gain exceeding 10%.
Currently, XLM is trading at approximately $0.248, situated near the critical 38.20% Fibonacci retracement level of $0.256, which is identified as a significant resistance zone.
Potential for Price Advancement
Should XLM successfully breach the resistance level at $0.256, it may propel itself towards the 50-day Exponential Moving Average (EMA) positioned at approximately $0.292 in the forthcoming hours or days.
Technical Indicators Analysis
The Relative Strength Index (RSI) on the 4-hour chart registers at 54, surpassing the neutral threshold of 50, thereby indicating an emerging bullish trend. For this recovery rally to maintain its momentum, it is imperative for the RSI to advance toward overbought conditions. Additionally, the Moving Average Convergence Divergence (MACD) has recently exhibited a bullish crossover, further reinforcing the prevailing bullish sentiment and suggesting potential buy opportunities.
Cautionary Outlook
Conversely, should XLM encounter resistance leading to a corrective phase, there exists a possibility for a retracement toward the weekly support level at $0.221.
