Key takeaways
- Stellar is up 7% in the last 24 hours, making it the best performer among the top 20 cryptocurrencies by market cap.
- On-chain data, derivatives metrics, and momentum indicators collectively support a positive outlook
Stellar (XLM) is showing strong performance above critical resistance levels on Tuesday, as XLM found support around its respective resistance the previous day.
With growing on-chain activity, positive derivatives data, and bullish momentum indicators, XLM is poised for potential upside.
Bullish sentiment backed by on-chain and derivatives data
CryptoQuant’s latest summary suggests a neutral to bullish outlook for XLM, highlighting large whale orders and favorable conditions in spot markets.
XLM is showing large whale orders with mostly neutral market metrics, reinforcing a bullish outlook.
On the derivatives front, XLM is displaying positive funding rates. XLM’s OI-Weighted Funding Rate flipped positive on Monday, reaching 0.0032% on Tuesday. This positive rate suggests a bullish market sentiment, with longs paying shorts.
XLM is showing promising signs of continued strength as it maintains momentum toward a potential breakout.
XLM technical outlook: Rebounds from key support
The XLM/USD 4-hour chart is bearish and efficient as Stellar is trading at $0.1815 at press time. The coin found support around the 50-day EMA at $0.165 the previous day.
XLM is holding a constructive near-term bias as it stabilizes above the 50-day EMA and the broken descending trendline that now offers secondary support near $0.153.
The current momentum indicators suggest that XLM could rally higher in the near term. The RSI on the 4-hour chart reads 71, just below the overbought territory. The MACD line is tracking above zero, suggesting buyers retain control while price stays capped above the 100-day EMA at $0.179.
If the rally persists, immediate resistance would be found at the 4-hour TLQ of $0.194, followed by a more substantive barrier at the 23.6% Fibonacci retracement of the broader downswing at $0.201.
A daily candle close above these levels would expose the 200-day EMA at $0.215, which defines a key medium-term hurdle.
On the downside, initial support is seen at the 100-day EMA of $0.179, with another major demand zone at the day’s open near $0.173.
An extended bearish performance would expose the 50-day EMA at $0.165, with deeper protection at the former descending resistance line-turned-support around $0.153.
