Stellar (XLM) price has increased more than 16% in the past 24 hours, recovering its market capitalization to $13 billion, showing strong upward momentum. Technical indicators such as RSI, Ichimoku Cloud, and EMA suggest that XLM could continue to post gains but will encounter potential resistance.
RSI is in overbought territory, indicating increased buying activity, while the recent Golden Cross and Ichimoku structure point to sustained upward momentum. Key levels such as resistance at $0.47 and support at $0.41 will play a decisive role in whether XLM continues its upward momentum or faces a sharp correction.
Stellar’s RSI remains in the overbought zone
Stellar’s relative strength index (RSI) currently stands at 71.1, remaining above the overbought threshold of 70 since January 1. This is a significant increase from December 31, when RSI numbers are in a more neutral position. A high RSI reflects strong buying momentum, contributing to XLM’s nearly 16% price increase over the past 24 hours.
However, an RSI above 70 also suggests that the asset may be reaching overbought conditions, so a short-term correction or consolidation is likely.
RSI is a momentum indicator that measures the speed and strength of price movements on a scale of 0 to 100. A reading above 70 indicates overbought conditions, often signaling a possible price correction or consolidation. while a reading below 30 indicates oversold conditions and recovery potential.
With XLM’s RSI at 71.1, the indicator suggests that bullish momentum remains strong but the asset is entering an area where price gains may be more difficult to sustain.
Ichimoku clouds indicate bullish momentum
Stellar’s Ichimoku Cloud chart reflects a strongly bullish structure, with prices sitting higher than the red cloud. The break above the clouds represents a sharp shift in momentum, with buyers well in control.
The green cloud ahead, formed by Senkou Span A and Senkou Span B, continues to confirm the bullish sentiment, suggesting a continuation of the uptrend in the near future.
Furthermore, the blue Tenkan-sen line (conversion line) has crossed above the orange Kijun-sen line (baseline), reinforcing the positive momentum as short-term price action surpasses the long-term price trend. The green Chikou Span (lagging length) is above both price and cloud, indicating a bullish trend in line with recent price history.
Overall, the Ichimoku Cloud structure suggests that XLM is in a strong uptrend, with support from technical indicators pointing to the potential for further upside.
XLM Price Prediction: Potential 27% correction if $0.41 support fails
Stellar’s EMAs recently formed a Golden Cross, a bullish indicator that occurs when the short-term EMA crosses the long-term EMA.
This technical signal suggests the potential for sustained upside momentum. If the current uptrend continues, Stellar price could test the resistance at $0.47. A successful reign above $0.47 could pave the way for further gains, with the next target at $0.50 marking a sharp increase in bullish sentiment.
However, if the uptrend weakens, XLM price is at risk of breaking below the nearest support at $0.41. Failure to hold this level could result in a sharp decline, with the next strong support level at $0.31 representing a potential 27% correction.
