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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.