Stellar (XLM) Price Prediction: What’s Next After the 513% Rally in the Past Month?

Stellar (XLM) has experienced a rollercoaster ride in recent weeks, marked by a stunning 513% surge over the past 30 days, followed by a

Written by: Arslan Butt • Tuesday, December 3, 2024 • 2 min read

• Last updated: Tuesday, December 3, 2024

Stellar (XLM) Price Prediction: What's Next After the 513% Rally in the Past Month?

Stellar (XLM) has experienced a rollercoaster ride in recent weeks, marked by a stunning 513% surge over the past 30 days, followed by a sharp 8% pullback earlier this week.

Currently trading around $0.55, XLM/USD shows resilience and potential for further growth.

Stellar’s Key Fundamental Developments

Stellar has been proactively enhancing its ecosystem’s security:

Partnered with Blockaid to integrate advanced Web3 security features
Collaborated with Hypernative Labs to prevent phishing and market manipulation
These strategic moves could drive broader adoption and investor confidence

Strategic alliances and security enhancements combined with the current price action point to cautious hope. Although temporary consolidation is probably inevitable, the long run is still bright.

XLM/USD Technical Analysis: Key Levels to Watch

XLM/USD

Defining the vital $0.40 support level—a zone once seen as resistance—the cryptocurrency has shown amazing technical strength. This price defense raises the likelihood that XLM might aim for its $0.79 high in the next weeks.

Momentum Indicators

RSI: The RSI, Relative Strength Index, indicates a balanced market attitude by cooling from overbought conditions (over 70) to a neutral 50.5. This implies following its notable recent surge, the crypto is consolidating.

Ichimoku Cloud: The Ichimoku Cloud presents a nuanced picture:

Current price positioned near the cloud
Relatively flat cloud offering support around $0.50
Short-term momentum indicators (Tenkan-sen and Kijun-sen) hint at potential weakness

XLM Whale Activity and Volume Analysis

Rising 124.30% to $4.15 billion, XLM’s trading volume has recovered considerably. But whale behavior reveals a different narrative:

Large holders took profits and initially exited long positions
The Whale vs. Retail Delta turned negative
Average Directional Index (ADX) dropped from 80 to 21, indicating weakening trend strength

XLM Short-Term Price Prediction

Analysts predict XLM could trade in the $0.40 to $0.62 range in the near term. Key resistance levels are identified at $0.53 and $0.56.

Potential Scenarios for XLM Price

Bullish Scenario: Breaking through resistances could propel XLM toward $0.65 or even $0.70
Bearish Scenario: Breakdown below Ichimoku Cloud might trigger a retest of supports near $0.41

Stellar (XLM) stands at a critical juncture. Its ability to maintain support levels, combined with ongoing ecosystem improvements, positions it favorably. Investors should watch key technical levels and ecosystem developments closely.