Stellar (XLM) has experienced an exceptional rise in its price, increasing by 78% this week to reach its highest level of the year. This surge has attracted significant interest from investors, pushing Stellar to a new record level.
The recent performance of cryptocurrencies has solidified their market position, attracting the attention of both individual and institutional investors.
Star traders are strongly optimistic
Activity in the Stellar market has increased, with open trading volume in futures reaching an all-time high of $520 million in the last 24 hours. This indicates growing interest among traders in the derivatives of this asset, capitalizing on its rise.
The rise in open trading volume in futures reflects strong confidence in the market, as traders bet on future price increases. The increase in open trading volume also suggests that traders believe XLM is in a clear upward trend.
With long positions outperforming short positions, sentiment is skewed positively, providing a favorable environment for further growth.
The overall momentum for XLM is strengthening, as indicated by the ADX (Average Directional Index), which is at 28.39. This value shows that the upward trend of the XLM price is gaining strength, having surpassed the threshold of 25.0, which is a key level for confirming trend strength.
The current reading of the ADX indicator also indicates its highest level in six months, demonstrating the rarity and strength of the upward trend for Stellar.
With the ADX surpassing the level of 25.0, it indicates that XLM is experiencing strong directional movement. Historically, these levels have been associated with significant price movements, making them a crucial indicator for traders.
XLM ADX Indicator
The price of XLM may reach $0.50
Currently, XLM is trading at $0.46, up 78.5% over the past week. However, this cryptocurrency faces resistance at $0.47, a level it has struggled to surpass in recent days. Breaking this resistance is crucial for continued growth, as it will determine XLM's ability to rise.
In light of strong sentiment among futures traders and technical indicators, XLM is likely to break through the resistance level of $0.47 and target $0.50 in the coming days.
A successful breakout could push XLM towards its next target at $0.56, marking an eight-month high. This would indicate the continued strength of this asset.
XLM Price Analysis.
However, if market sentiment changes overall or investors start selling their holdings, XLM may face a sharp decline. If the price drops below key support levels at $0.43 and $0.41, it may fall further to $0.35, negating the current bullish expectations.