XLM Increases 459% Last Month But Momentum Weakens

Stellar (XLM) price has skyrocketed 459% in the past 30 days, attracting huge market attention. Despite this rally, the RSI has cooled to 50.5, indicating neutral momentum after a brief period of overbought in late November.

At the same time, XLM faces important resistance levels at $0.53 and $0.56. The EMA lines still show a bullish trend but signal weakness in the short term. The Ichimoku Cloud suggests a possible change in market sentiment.

XLM RSI Is In Neutral Zone

Currently, Stellar’s RSI is at 50.5, down from 64 just a day ago. From November 21 to 24, RSI remained above 70, coinciding with XLM price reaching its highest level since May 2021.

This short-term period shows strong upward momentum before the recent market cooldown.

The RSI, also known as the Relative Strength Index, measures the speed and variability of price movements, providing insight into whether an asset is overbought or oversold. RSI values ​​above 70 typically indicate overbought conditions and the possibility of a price correction, while values ​​below 30 suggest oversold conditions and the possibility of a price recovery.

With the XLM RSI currently at 50.5, it reflects a more neutral state, suggesting a balance between buying and selling pressure. This could imply that the price is in a period of convergence, waiting for the next market signal to determine the next move.

Ichimoku Cloud Shows Current Sentiment May Be Changing

Stellar’s Ichimoku Cloud chart shows current price action near the cloud, indicating a possible test of support.

The derived area (blue and red shaded area) reflects a neutral to slightly bullish trend. The clouds are relatively flat but still provide support around the $0.50 level. The Tenkan-sen line (blue line) is below the Kijun-sen line (red line), suggesting weakness in short-term momentum.

If XLM stays in the clouds, the overall uptrend could continue, with a recovery to Tenkan-sen and Kijun-sen levels likely.

However, a break below the cloud could signal a shift to the downside, with price likely to retest lower support levels. The flat nature of the cloud indicates confusion in the market, so traders may wait for a breakout or a sharp decline as the next clear signal.

XLM Price Forecast: Can It Reach $0.70 In December?

XLM currently faces two near resistance levels at $0.53 and $0.56, while its EMAs remain bullish, with the short-term averages above the long-term ones.

However, Stellar price recently dropped below the shortest EMA, signaling a possible loss of momentum in the short term. This suggests that the current uptrend is weakening and if it does not recover quickly, further decline could occur.

If the uptrend regains momentum and XLM price breaks above these resistance levels, it could retest the $0.638 level, with the potential for a rally to $0.65 or even $0.70, re-approaching the prices seen in 2021.

On the contrary, the Ichimoku Cloud and EMA models show signs of a possible trend reversal. If this move materializes, XLM price could test support near the $0.41 level, representing a significant correction from current levels.

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