Stellar breaks through trendline…Is this time a real start to an uptrend?

▲ Stellar (XLM)/ChatGPT generated image ©

Stellar has broken through its downtrend line, creating a technical rebound signal, and with a surge in network activity, short-term upside expectations are rapidly growing.

According to investment specialized media FXStreet on April 17 (local time), Stellar (XLM) is trading around $0.167 and has shown a short-term correction after rising more than 10% this week. The key is that it broke above the downtrend line at $0.158 the previous day, which is technically interpreted as a signal suggesting the possibility of entering a new uptrend phase.

On-chain data supports the bullish expectations. According to blockchain data platform Chainspect, the Stellar network processed over 14.19 million transactions in one day, reaching a new quarterly high. The surge in transaction volume signifies increased market participation and liquidity, and it is evaluated as a signal of expanding demand, which forms the basis for price increases.

A positive trend is also detected in the derivatives market. The XLM funding rate has risen to 0.011%, transitioning to a structure where long positions pay costs to short positions. In similar past situations, prices have risen rapidly, and this is again acting as a factor stimulating further upside potential.

Technically, it is still too early to consider it a complete trend reversal. The current price remains below the 100-day exponential moving average of $0.180 and also below the 200-day exponential moving average of $0.215. However, the 50-day exponential moving average of $0.164 is acting as support, and the Relative Strength Index (RSI) is at 55, leaving room for further upside. The Moving Average Convergence Divergence (MACD) also shows a weak positive trend, indicating that selling pressure has eased.

On the upside, $0.180 acts as the first resistance level, followed by the $0.201 and $0.215 ranges as key breakout zones. Conversely, if the $0.164 support level breaks, there is a possibility of a decline to $0.158 and even $0.136. The media analyzed that Stellar has currently entered an 'initial rebound phase,' but further resistance breakthroughs are needed to transition into a mid-to-long-term uptrend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*