XLM increased by 10.34% after breaking the inverse head and shoulders pattern, heading towards the $0.39 mark.
Open Interest has increased by 24% and Funding Rates have turned positive, confirming traders' long-term expansion trend.
After a difficult period to achieve significant gains, Stellar [XLM] has finally made a breakthrough. On the daily chart, this altcoin has risen from a local low of $0.258 to a monthly high of $0.305.
Currently, XLM is trading at $0.3008, recording a daily gain of 10.34%. This breakthrough has triggered new bullish interest, particularly in the derivatives market.
Additionally, the trading volume of XLM has increased by 214.09%, reaching $362 million. In the Futures market, Stellar's Open Interest rose by 24% to $183.7 million.
This price increase has led analysts to hope for a sustainable bull run.
One of the prominent cryptocurrency analysts, Ali Martinez, has suggested a potential increase to $0.39 based on the inverse head and shoulders pattern.
Source: X
According to Martinez, XLM has broken the inverse head and shoulders pattern, which often signals a trend reversal. With Stellar testing $0.24 as a support level, the right shoulder seems to have completed.
He expects a rally to $0.39 if buyers continue to control the market.
Is Stellar ready for a price increase?
According to TinTucBitcoin's analysis, Stellar is undergoing a strong upward trend amid rising demand.
Considering Stellar's RSI, the indicator has surpassed the bullish threshold in the past day. RSI has risen to 66.45 while MA is 54, indicating that buying pressure is higher.
Therefore, buyers are currently dominating the market, completely pushing back sellers.
Source: TradingView
This buying pressure has increased the price momentum of the altcoin.
Moreover, the MACD has risen to 30.43 after a bullish crossover two days ago, confirming market strength.
These buyers have mainly dominated the futures market, with Taker Buy prevailing in Futures Taker CVD. This indicates that buyers are strategically waiting for the next developments.
On the weekly timeframe, sellers are absent according to futures CVD analysis.
Source: CryptoQuant
Futures traders go long as sentiment shifts
Considering the aggregated Funding Rates across exchanges, it has turned positive over the past day.
The shift to positive reflects a change in market sentiment, with investors entering the market to seek long positions. Thus, long positions are currently dominating the market.
Buyers are dominating the futures market, as observed above, mainly looking for long positions, reflecting strong bullish sentiment among Stellar buyers.
Source: Coinalyze
Simply put, Stellar is currently experiencing strong bullish sentiment.
Increased optimism has led to strong upward momentum as buyers return to the market. This condition allows XLM to achieve significant profits.
If the current sentiment holds, Stellar will find the next important resistance level around $0.34.
However, if short-term investors use this rally to exit at breakeven, XLM may return to the level of $0.281 or even $0.25.
Nevertheless, with the upward momentum and bullish structure, the potential for price increases remains strong, at least for now.
Source: https://tintucbitcoin.com/xlm-dung-da-giam-8-thang-se-vuot-034-usd/
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