XLM price surged above the major resistance, displaying a huge possibility of initiating a monstrous rally to reclaim 2024 highs. After a monstrous rally during the middle of Q4, 2024, the crypto markets failed to hold the elevated trend, compelling most cryptos to plunge and consolidate within a narrow range. The prices of Stellar (XLM) also faced a massive pullback that dragged them to the monthly lows. However, as the bulls wake up, these tokens have barged into the resistance and may also manifest extreme strength in the coming days.
The Stellar price broke out of the horizontal consolidation that it held for over a couple of months, which was followed by a rejection from the yearly highs. Since then the price has been trading within a falling wedge and the latest rebound initiated a breakout from the range, flashing bullish signals for the crypto. However, the XLM price may undergo a small pullback before initiating a fresh bullish move towards the ATH. As seen in the above chart, the volume has risen significantly after a massive squeeze, hence indicating a notable rise in the trader’s interest over the token. The bullish divergence in the on-balance volume or OBV, substantiates the bullish claim, raising the possibility of a continued ascending trend beyond $0.5. However, the price may face a minor pullback as the Supertrend remains bearish. Therefore, the Stellar (XLM) price is expected to slightly drop below $0.4 which may attract notable volume, triggering a rally beyond the 2024 highs, paving the way for a new ATH above $1.
Why is XLM surging? XLM is surging due to a breakout from consolidation, increased volume, and bullish divergence, signaling potential for a rally beyond $0.5.
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