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Finbold 2024-12-23 10:44:32

Stellar (XLM) set for an imminent rally

Trading since Wednesday , December 18, proved an uncomfortable reminder of the persistent volatility – perhaps even fragility – of even the strongest cryptocurrency bull runs. Despite the significant downturn that is, by press time on December 23, proving difficult to shake off, few investors and analysts believe that digital assets have topped this cycle and, indeed, most now look to the coming weeks and months for a renewed rally. Technical analysis ( TA ), as applied to Stellar ( XLM ) by the popular on-chain expert Ali Martinez, appears to back the mid and long-term optimism, and the token might, in fact, be poised for an imminent upswing. XLM chart showing the TD Sequential buy signal. Source: Ali Martinez Why XLM is poised for a rally Specifically, in a December 22 X post, Martinez explained that a technical analysis tool called TD Sequential is sending a buy signal for XLM, offering a chance for a rebound toward – and possibly beyond – the recent highs near $0.55. TD Sequential is used to gauge whether the current trend will persist or experience a reversal based on the historical performance of the asset. Martinez, however, added that there is a prerequisite for such a rally – a sustained holding above the critical support zone at $0.33. Fortunately for Stellar bulls, the token is trading somewhat comfortably above the level with XLM price today of $0.35977. XLM 7-day price chart. Source: Finbold Why an imminent XLM rally is not guaranteed Still, it is worth pointing out that the sum of the many technical analysis tools and indicators is not yet decisively bullish on Stellar. For example, the relative strength index ( RSI ), despite being on the optimistic side, remains relatively neutral at 43.78. Some tools – such as the volume-weighted moving average (VWMA) and the Hull moving average – remain fixed on the ‘sell’ side. Ultimately, despite TD Sequential’s ‘buy’ flash, XLM’s true test is yet to come as the token approaches its nearest resistance level near $0.38 – an uncertain prospect at press time as the last 24 hours of trading led to a 2.07% price decline. Featured image via Shutterstock The post Stellar (XLM) set for an imminent rally appeared first on Finbold .

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