Stellar (XLM) Pumps 7%, Is It Momentum or Just a Quick Flash?

• Stellar has posted a 7% gain, trading at $0.40.
• XLM’s trading volume has jumped by over 48%.

The crypto market kicked off the day with a brief spike of 1.14%, with the market cap reaching $3.71 trillion. The major assets have been charted in green, and some are still in red, swinging between breakouts and declines. Notably, BTC and ETH are hovering at $114.2K and $3.5K. Meanwhile, Stellar (XLM) secures a spot among the top gainers with a 7.97% gain.

XLM’s crucial resistance ranges between $0.3758 and $0.4167 have been tested to confirm the entry of the bulls. The asset has bottomed at the $0.3753 mark in the early hours. Later, XLM moved up to a high of $0.4172, with the backing of bull power. A continued move on the upside might trigger the price to gain more.

According to CoinMarketCap data, the altcoin, Stellar, trades within the $0.4067 zone, with its market cap reaching $12.83 billion. In addition, the daily trading volume of the asset has surged by over 48.36%, resting at $495 million. As per Coinglass, the market has seen 866.48K worth of Stellar liquidation in the last 24 hours.

Is a Bullish Reversal Coming for Stellar?

Stellar’s Moving Average Convergence Divergence line and the signal line are settled below the zero line. It indicates the overall sentiment is within the bearish zone. With the MACD moving upward and approaching the zero line, a bullish momentum may build. Besides, the Chaikin Money Flow (CMF) indicator found at 0.24 suggests strong buying pressure in the market. Also, the capital is flowing into the asset, seen as a positive sign for the XLM price movement.

XLM chart (Source: TradingView)

Assuming the bears strengthen their dominance, which drags Stellar down to the nearest support at the $0.4061 range. Upon breaking this level, the price might continue to decline, and the emerging death cross could send the price toward a low of $0.4055. If the bulls enter the XLM market, the price might climb and test the $0.4073 resistance. Sustaining above this price range could drive the Stellar price above $0.407 with the potential of the golden cross.

XLM chart (Source: TradingView)

Moreover, the Bull-Bear Power (BBP) reading of 0.0307 implies a mild bullish dominance in the XLM market. It is weak but is building the buying strength. Stellar’s daily Relative Strength Index (RSI) is positioned at 57.09, signalling a neutral to bullish momentum during the phase of an early potential uptrend. The asset likely has room for further gains.

Source