Stellar XLM Rallies 110% to $0.515, Eyes $0.364 Pullback
Stellar (XLM) surged over 110% in a week, climbing to a six-month peak of $0.515 on heavy trading volume. Technical indicators now signal exhaustion: a bearish divergence on the 4-hour chart and an overextended convex Bollinger band. Despite a bullish weekly trend supported by Bitcoin’s and Ethereum’s ongoing rallies, XLM faces a likely pullback. Fibonacci retracement levels between $0.216 and $0.516 point to a key demand zone at the 50% level of $0.364. Accumulation/Distribution and Chaikin Money Flow confirm capital inflows, while liquidation heatmaps show long-liquidation clusters near $0.445–$0.395 and overhead liquidity above $0.51. Traders should watch volume trends and wait for a dip toward $0.364 before initiating new long positions, managing risk closely in this volatile phase.
Bearish
The sharp 110% rally in Stellar XLM, driven by heavy volumes, has hit technical resistance and shown bearish divergence on shorter time frames. In the short term, this signals profit-taking and a likely pullback toward the 50% Fibonacci retracement at $0.364. Traders should be cautious entering new longs until the price tests this demand zone. Over the medium to long term, underlying bullish trends remain intact—supported by Bitcoin and Ethereum strength—but consolidation near $0.364 is necessary to sustain further upside. Thus, while the broader market bias is positive, the immediate price impact on XLM is bearish.