Stellar has experienced a strong rebound in recent days and has reached the upper resistance at $0.51.
The rebound has brought the RSI into overbought territory, indicating a possible consolidation or correction in the short term. If buyers do not allow the price to drop below $0.43, the XLM/USDT pair could surpass $0.51. If this occurs, the pair could initiate the next stage of the uptrend towards $0.64 and subsequently towards the target of $0.80.
This positive outlook will be invalidated in the short term if the price drops and closes below $0.43. The pair could then fall to the 20-day EMA ($0.36).
The RSI on the 4-hour chart shows early signs of forming a bearish divergence, suggesting a weakening of momentum. If the 20-day EMA gives way, the pair could drop to the 50 SMA. This is an important level to watch, as a break below the 50 SMA could sink the pair to the 50% Fibonacci retracement level of $0.37.
Alternatively, a solid bounce from the 20-day EMA indicates buying on dips. This increases the likelihood of a breakout above the resistance of $0.51. The pair could then resume the uptrend to $0.59.