- On-chain metrics showed steady growth in TVL and network accounts as the Long-Short Ratio rose, signaling long-term investor conviction despite price fluctuations.
- Despite a short-term overall bearish market sentiment, XLM HODLers showed a positive investor sentiment.
Stellar [XLM] is flashing mixed signals as the price consolidated inside a bullish flag on the daily chart.
At press time, XLM was trading at $0.3410, after decreasing 0.5% in price, while the trading volume dropped by 10.61%.
Following a steady network growth and total value locked in late 2024 to date, the price consolidation could lead to a breakout above this bullish flag.
XLM’s technical setup
XLM is trading inside a bull flag that could be a continuation pattern of its previous bullish momentum.
The altcoin faces resistance at the $0.35-$0.40 key zone, leading to a price consolidation as the $0.28-$0.30 zone becomes the support.
According to Solberg Invest on X(formerly Twitter), if XLM faces high buying pressure, the consolidation could lead to a breakout above the $0.40 key resistance level targeting the $0.51, a previous resistance level.
Source: X
On-chain metrics and market sentiment suggest…
XLM faces a short-term bearish market sentiment based on price volatility, thus failing to confirm its uptrend momentum.
However, on-chain data shows steady growth in network accounts and Total Value Locked since late 2024.
Source: DefiLlama
The EMA 200 at $0.2428, being below the current price, signals the altcoin’s long-term strength based on TradingView data.
Additionally, the 24-hour Long-Short Ratio stood at 2.31 and has grown to 2.41 in the 4-hour timeframe showing that investors have been buying XLM, at press time.
Source: Coinalyze
What’s next for XLM?
XLM’s monthly oscillator summary of major indicators signals a buy despite a 2.63% decrease in Open Interest in the last 24 hours, according to Coinalyze data.
At the time of writing, the RSI stood at 44.93 and has grown to 53.15 in the 4-hour timeframe, showing potential accumulation.
A breakout above the bullish flag with strong buying pressure in the next few days could boost XLM’s uptrend momentum toward $0.51.
However, failure to confirm a break above the $0.40 resistance could lead to further consolidation in the $0.28-$0.35 zone. One should watch the altcoin’s buying pressure, trading volume, and price action within its bullish flag.
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