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Stellar ($XLM) has surged by an impressive 35% in the last 24 hours following a bullish "golden cross" signal.
A golden cross occurs when the 50-day moving average crosses above its 200-day moving average, signaling a potential bullish trend. For $XLM, its latest golden cross coincided with a breakout above key resistance levels, resulting in fresh multi-year highs around $0.243, which were last touched in March 2022.
$XLM posted its last golden cross in March this year, which was quickly succeeded by a death cross when markets saw profit-taking. The most recent golden cross signifies a shift in momentum after a long period of consolidation following the last death cross.
$XRP and $XLM price movements have long been correlated by the market. $XRP has surged past the $1 mark Saturday, hitting a three-year high.
The recent surge in $XRP's price, driven by favorable regulatory developments and increased whale activity, has also positively impacted $XLM. $XLM mirrored $XRP price action surging from lows of $0.14 to $0.243, a 73% spike in Saturday's trading session, printing a giant green daily candlestick.
Stellar price action
Stellar has profited from the current bullish market momentum, with $XLM increasing from a low of $0.09 on Nov. 4. The initial breakout resulted in a move above the moving averages of 50 and 200, which had held back the $XLM price since April of this year. Bulls gained an advantage as the whole cryptocurrency market rebounded, with Bitcoin reaching all-time highs of more than $93,500 on Wednesday.
From Nov. 4 to the present, $XLM would mark 11 out of 13 days in green. The surge reached a high of $0.243 on Saturday before bulls pulled back slightly.
At the time of writing, $XLM was still up 34% in the last 24 hours to $0.20, and up 85% for the week per CoinMarketCap data. $XLM is presently ranked as the 23rd largest cryptocurrency with a market cap of $6.16 billion.
If Stellar sustains its positive trend, traders should expect further upward movement, although caution is advised given the potential for profit-taking at higher levels.
In the short term, key resistance levels to watch are $0.25 and $0.27, with support around $0.20. If the rally continues, $XLM may see more increases, potentially reaching new highs at $0.443 and $0.80 in the following weeks.