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- Stellar is up 7% in the last 24 hours, making it the best performer among the top 20 cryptocurrencies on the market.
- On-chain data, derived metrics, and performance indicators collectively contribute to optimism.
Stellar (XLM) is showing strong activity above critical levels on Tuesday, as XLM found support around its previous day’s resistance.
With growing on-chain activity, good derivatives, and strong performance indicators, XLM is on the verge of an upgrade.
Bullish sentiment supported by chains and derivatives
The latest CryptoQuant summary shows the neutrality of XLM, showing large orders of whales and favorable conditions in the local markets.
XLM shows large whales with multiple market sizes, which reinforces the trend.
In terms of output, XLM is showing good value for money. XLM’s OI-Weighted Funding Rate it rose sharply on Monday, reaching 0.0032% on Tuesday. This positive rate indicates a bullish market sentiment, and long pay-off shorts.
XLM is showing signs of continued strength as it continues to explode.
XLM’s technical outlook: It bounces back from major support
The XLM/USD 4-hour chart is bearish and active as Stellar is trading at $0.1815 at press time. The currency found support around the 50-day EMA at $0.165 the previous day.
XLM is holding a biased construction near term which is fixed above the 50-day EMA and a broken downtrend that provides secondary support near $0.153.
Current indicators suggest that XLM may go higher in the near future. The RSI on the 4-hour chart reads 71, below the overbought zone. The MACD line is right above zero, suggesting that buyers will steer clear as the price moves above the 100-day EMA at $0.179.
If the rally continues, long-term resistance can be found at the 4-hour TLQ of $0.194, followed by a major barrier at the 23.6% Fibonacci retracement of the major low at $0.201.
A daily candle that closes above these levels would reveal the 200-day EMA at $0.215, which means a strong moving average.
On the downside, initial support is seen at the 100-day EMA of $0.179, with another key area at the day’s opening near $0.173.
Further action may reveal the 50-day EMA at $0.165, with deep protection at the old resistance-turn-support line around $0.153.
