Stellar (XLM) has surged recently, supported by positive sentiment in the cryptocurrency market. This upward momentum has created positive energy, currently reflected in technical indicators.
The price of XLM is showing signs of continued growth, and investors are waiting to see if this altcoin will maintain its upward trend.
Signals indicate that XLM could continue its recovery
The MACD indicator is signaling a potential bullish crossover. Recently, the MACD histogram chart nearly shifted into the bullish zone but was slightly interrupted.
However, with the overall market context stabilizing, it is highly likely that this bullish signal will soon complete, helping XLM break through current resistance levels and create additional momentum to attract investors.
In addition, the liquidation map data from Coinglass shows that many traders are still holding short positions worth nearly $70 million. If XLM continues to rise, this wave of liquidations could trigger additional buying pressure, making it difficult for bears to control the market.
XLM's comprehensive recovery target is in the $0.50 range – where this altcoin could accumulate and face new resistance levels. Reaching this level would force many short investors to close their positions, creating a chain reaction pushing the price higher.
XLM needs a push to complete its recovery rally
Currently, XLM is trading around $0.44, up 18% in the past 10 days and facing resistance at $0.445. To complete the recovery process, XLM needs to break through this resistance level and aim for $0.500.
If the price continues to move in this direction, the growth momentum could push XLM up to $0.470, bringing it closer to the target of $0.500. As the liquidation of short positions increases, selling pressure will ease, allowing the upward trend to be maintained and potentially break above $0.50.
However, if XLM faces selling pressure, the price could drop below the support level of $0.424. A drop to $0.393 would invalidate the bullish thesis, signaling a change in market sentiment.
Such a correction would raise concerns about the sustainability of the current trend, potentially slowing down XLM's recovery.