- Stellar Lumens surges 21%, entering the top 20 cryptocurrencies with a market cap of $7.16 billion.
- A golden cross and XRP’s rally boost XLM, signaling strong bullish momentum.
- Rising Open Interest suggests growing investor confidence, but declining volume raises concerns about sustainability.
As of writing, Stellar Lumens had surged by 25%, pushing the price to $0.2393. The market cap now exceeds $7.16 billion, sending XLM into the top 20 cryptocurrencies. This rally has extended Stellar’s weekly gains to more than 118%. With the price hitting multi-year highs, many are asking whether this surge will continue.
Golden Cross Sparks Bullish Momentum for XLM
XLM’s recent price surge follows the formation of a golden cross on the chart. A golden cross occurs when the 50-day moving average crosses above the 200-day moving average. This is typically seen as a strong bullish signal. For XLM, this pattern happened just as the price broke through key resistance levels.
The price reached $0.243, a level not seen since March 2022. Earlier this year, a similar golden cross was followed by a quick reversal. However, this time, the bullish momentum appears stronger. XRP’s recent surge past $1 has also helped fuel XLM’s rise.
Rising Open Interest and Potential Hurdles for XLM
XLM’s on-chain data show strong bullish sentiment. The Open Interest (OI) for XLM has surged 46% in 24 hours, reaching $144 million. This rise indicates increased market confidence and new positions being established. If this momentum continues, XLM could push past $0.40.
However, a drop in daily trading volumes could signal caution. Trading volume fell by 30%, suggesting the rally might be losing steam. This slowdown could indicate waning interest from traders.
For XLM to maintain upward momentum, resistance at $0.25 and $0.27 needs to be broken. If that happens, the price could rise further, potentially reaching $0.44 and even $0.80. The key will be whether the bullish momentum holds in the coming days.
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