After A Month of Decline XLM is Surging – What’s Behind?

• XLM surged 25.79% in 7 days, trading at $0.4507, indicating strong bullish momentum.
• Open interest for XLM rose 6.51%, reaching $280.08 million, reflecting trader confidence.
• RSI is at 61.14, approaching overbought territory, signaling potential resistance ahead.

Stellar’s native token, XLM, has been experiencing a strong rebound after suffering a bearish run in the past month. At press time, XLM is at $0.4507, an increase of 25.79% in the last seven days. This surge indicates changing market sentiment as the cryptocurrency gains traction and heads toward key resistance levels.

What’s Driving the Price Movement?

XLM has been trading at a vital support level of $0.3307, which has served as a floor during its decline. The recent price increase suggests a possible breakout from this consolidation phase.

The key resistance is set at $0.6509. The cryptocurrency is expected to test this level in the near future and possibly go higher. If XLM breaks out of this resistance level, it may experience bullish runs in the coming weeks.

The price prediction points toward a potential 45.16% increase to reach the $0.6509 mark. This aligns well with the current market outlook and gives traders a clear target for future movement.

Source: TradingView

XLM Open Interest: What’s the Market Telling Us?

Open interest has spiked and has been recorded to have risen by 6.51%, taking the total open interest to $280.08 million. The rise in open interest indicates that more traders are beginning to have long-term positive views on the price of XLM. Higher participation and interest in XLM could increase prices, supporting the current upward trend.

Source: Coinglass

XLM Technical Indicators: What Do They Suggest?

The RSI is now 61.14, and XLM is approaching the overbought zone. Although this is not a clear indication of an exit signal for reversal, it suggests caution for traders as the price could trend downward if the RSI rises above 70.

This suggests that the market is at a stage where the contraction of the Bollinger Bands is narrowing closely. Nevertheless, XLM’s recent action to get out of the lower band may signal the start of the widening of the Bollinger Bands, which suggests larger price fluctuations in the coming weeks.

Source: TradingView

Conclusion

In conclusion, after a corrective month of price decline, XLM has displayed bullish buying pressure, and the recent 25.79% confirms that more rallies may be impatient. Based on the current price of $0.4507, XLM is very close to important resistance levels that will result in a higher rise. Since the market remains bullish, traders should keep an eye on these levels, especially for potential breakouts.

The post After A Month of Decline XLM is Surging – What’s Behind? appeared first on CryptoTale.