Stellar [XLM] price prediction – Here’s why THIS level could soon trigger fresh upside

Key Takeaways

Stellar has a strongly bullish outlook in the short term, and could make gains over the next 24-48 hours. Beyond that, a hike in buying pressure would be needed to propel XLM past a key resistance zone.

Stellar [XLM] has retraced alongside the rest of the crypto market. Since 19 July, it has fallen by 21.2% on the charts. On the contrary, the altcoin market cap has depreciated a more modest 4.1%, while Bitcoin [BTC] has seen its value dip by 2.9%.

This may be a sign of heightened volatility for XLM, which could give traders more opportunities.

However, it is not something that should deter investors either. Stellar bulls have defended a key support level and have been looking to reclaim the $0.425 zone as support. If accomplished, it could begin a rally towards the local highs at $0.515 and offer a buying opportunity at $0.42.

Can XLM succeed in its bid to initiate a trend change?

Source: Coinalyze

At the time of writing, the short-term prospects were firmly bullish.

Coinalyze data revealed that the spot CVD has been rising over the past 24 hours, with the Open Interest creeping higher too. This showed greater spot demand and speculative activity. The funding rate was also positive and together, they underlined a bullish case for XLM in the next 24-48 hours.

Source: XLM/USDT on TradingView

The 1-day price chart reflected a bearish market structure. Even though XLM has leapt by 12% from the 50% retracement level at $0.366, it was only retesting a former support zone at $0.42-$0.44.

Highlighted in white, this resistance zone must be reclaimed as support. If successful, traders and investors can look for a buying opportunity. In the meantime, they should be prepared for a price rejection from here. The RSI seemed to be at neutral levels, and the OBV was also moving sideways.

To put it simply, the technical indicators did not reflect bullish strength yet.

Source: CryptoQuant

Over the past couple of days, the spot retail trading activity has fallen.

CryptoQuant uses trading activity to understand if retail investors have been entering or leaving the market. Generally, when there is too much retail (red bubbles), the market can be considered overheated.

Source: CryptoQuant

Finally, the spot taker CVD was neutral. Combined with the reduced spot retail activity, investors have reason to believe in XLM’s bullish potential. The token saw steady accumulation from April to late June, as seen by the green spot taker CVD.

Unlike December 2024, active selling pressure is not mounting on Stellar so far. This might give XLM bulls the time they need to push the price past the $0.42-$0.44 resistance zone.