thenewscrypto.com
- XLM hits $0.2550, the highest since February 2022.
- Overbought RSI signals potential price correction or consolidation ahead.
Stellar (XLM) has achieved a new milestone, surpassing $0.2550 for the first time since February 2022, marking an 18% surge in the last 24 hours. Over the past week, the cryptocurrency has soared by an impressive 120%, despite a 35% dip in trading volume during the same period.
The surge in XLM’s price coincides with broader market activity following Donald Trump’s reelection as the United States President, a development that has bolstered pro-crypto sentiments. XLM has rallied over 160% since the election, though analysts caution that the bullish trend might be nearing exhaustion.
Meanwhile, from a technical perspective, XLM’s weekly Relative Strength Index (RSI) has reached 81, its highest level since February 2021. An RSI above 70 indicates overbought conditions, raising the likelihood of a price correction. Adding to the caution, XLM is consolidating near the $0.2757 resistance level, aligned with the $0.268 Fibonacci retracement. A failure to breach this resistance could lead to a retracement toward the $0.1668 – $0.1457 support range.
However, historical trends offer room for optimism. In 2021, XLM gained 900% within six months after reaching an overbought RSI.
XLM and XRP Prime Time?
Stellar’s fundamentals remain strong, particularly with its association with Ripple Labs’ XRP. Both cryptocurrencies are under scrutiny by the U.S. Securities and Exchange Commission (SEC), which classifies them as securities. Trump’s promise to replace SEC Chair Gary Gensler with pro-crypto regulators has further fueled speculative trading activity.
Social sentiment has also played a role in XLM’s recent rally. Data from LunarCrush highlights a surge in social mentions and engagement, with it becoming the top coin by social activity on 23 October. Despite the bullish momentum, overbought indicators and high volatility suggest caution for traders.
While XLM’s near-term trajectory appears uncertain, the ongoing rally underscores the market’s resilience amid shifting political dynamics.