Stellar’s Golden Cross and $0.33 Support Suggest Potential Recovery

Stellar (XLM) has retraced some gains, trading at $0.4255, a 0.96% drop in 24 hours and 9.09% decline over the week. With a circulating supply of 30 billion XLM, its market cap is $12.79 billion.

Despite the pullback, analysts urge close monitoring due to historical data and technical indicators.

Technical Indicators Point to Potential Upside

Recent analysis reveals a “golden cross” with the 13-day moving average surpassing the 49-day moving average, seen as a bullish signal. XLM’s price has retreated from its November high of $0.60, now stabilizing around $0.42.

Support is evident at $0.33, near the 49-day MA, where buyers may intervene if prices drop. The Relative Strength Index (RSI) stands at 52.40, indicating neutral momentum.

If XLM holds between $0.33 and $0.42, analysts predict a recovery towards $0.45 or higher.

Historical Data Fuels Optimism for Future Growth

Historical performance offers insight into XLM’s future. In the 2020–2021 bull run, Stellar surged from $0.025 to $0.79, a growth of 3,162.88%. Similar gains are projected, with estimates reaching $2.19 and potentially $2.27, contingent on market conditions and investor sentiment.

Crypto analyst EGRAG CRYPTO likens this potential rally to past movements, stating,

> “We’ve just touched the Mouse’s Moustache, and now it’s time to build momentum!”

EGRAG emphasizes the need to retest crucial exponential moving averages (EMAs) as XLM strives to surpass resistance levels.

Market Sentiment Shows Mixed Signals

Coinglass data shows a 30.20% drop in trading volume, now at $614.82 million, and a 4.89% reduction in open interest, signaling decreased market activity. Yet, long/short ratios on Binance (2.2258) and OKX (1.77) indicate a bullish trend, with Binance’s top traders favoring longs at 2.3378.

Liquidation data shows $621.13K was liquidated in the last 24 hours, dominated by longs ($552.63K), highlighting over-leveraging risks. Meanwhile, spot market data reflects $3.37 million in net outflows on December 13, indicating investor accumulation and a reduced sell pressure on XLM.

While XLM faces price declines, historical data, technical indicators, and accumulation trends suggest potential for renewed upward momentum.