- Stellar (XLM) is showing strong bullish potential, with a possible breakout above $0.416 that could lead to a 77% surge toward $0.74, supported by key technical indicators like RSI and MACD.
- Additionally, XLM’s Total Value Locked (TVL) has surpassed $62 million, signaling growing investor confidence and increased activity within the Stellar ecosystem.
Stellar (XLM) is showing strong signs of a potential breakout, with bullish momentum brewing within a defined channel pattern. Crypto analysts are closely watching this movement, and recent data from DefiLlama indicates an impressive growth in XLM’s Total Value Locked (TVL), which has surpassed $62 million. Could this be the catalyst for a major rally? Let’s take a closer look.
XLM’s Channel Breakout Could Fuel a Rally
Since late November, XLM has been trading within a channel pattern, marked by a series of highs and lows connected by two trendlines. This setup suggests that a breakout above resistance could lead to significant price gains.
Currently, Stellar has found support at its 200-day Exponential Moving Average (EMA) around $0.284 and is trading near $0.343. If the price manages to break and sustain itself above the critical $0.416 level, analysts predict a potential 77% surge, targeting $0.74.
Technical Indicators Support Bullish Sentiment
Several key technical indicators reinforce the bullish outlook for Stellar:
- Relative Strength Index (RSI): The RSI currently sits at 45 after bouncing from an oversold level of 30. For sustained bullish momentum, the RSI must push past the neutral 50 level.
- Moving Average Convergence Divergence (MACD): The MACD line is above the signal line, showing a bullish crossover. Additionally, rising green histogram bars above the neutral zero line indicate strong buying pressure.
These indicators suggest that bulls are regaining control, and if momentum continues, XLM could experience a substantial price rally.
Rising TVL Signals Growing Investor Confidence
According to DefiLlama, XLM’s TVL has seen a steady increase, climbing from $53.57 million on February 9 to $61.84 million by Thursday. This continuous rise highlights growing user activity and confidence in Stellar’s ecosystem. As more assets flow into XLM-based protocols, the likelihood of sustained bullish momentum increases.
What’s Next for Stellar?
With strong technical indicators, rising TVL, and an impending channel breakout, Stellar is poised for a potential rally. If the price decisively breaks the $0.416 resistance, the projected target of $0.74 becomes increasingly viable.
Investors should keep an eye on key resistance levels and monitor market sentiment closely. If bullish momentum continues, Stellar could offer an exciting opportunity in the crypto market.
Will XLM achieve its $0.74 target? Only time will tell, but the signs are pointing in the right direction.