Stellar (XLM) Price Surges Over 50%: Key Levels to Watch

The price of Stellar (XLM) has experienced a substantial surge in the past 24 hours, ranking it as the second top gainer of the day, following XRP. This surge is likely attributed to Ripple Labs' recent legal victory, which clarified that XRP is not classified as a security in the United States. Jed McCaleb, co-founder of both Stellar and Ripple, often results in similar price trends for the two cryptocurrencies. Over the past day, XLM has risen by over 46%, with weekly gains of approximately 50%. However, it's essential to remain cautious during rallies, as there is always the possibility of a price pullback. XLM must maintain its price above certain levels to prevent bearish sentiment from dominating. The increase in XLM's market capitalization is a positive sign, indicating a rise in buying volume. When analyzing the one-day chart, XLM is currently trading at $0.143, exhibiting a price trajectory similar to XRP. This price level was last reached in May of the previous year, marking a yearly high for the coin. The current overhead resistance for Stellar (XLM) stands at $0.160, and a breakthrough at this level would reinforce the bullish trend. If XLM manages to surpass this resistance, the next challenging level would be $0.180. On the downside, local support for XLM is currently at $0.131. If the price falls to this level, it could attract bearish pressure, potentially leading to a drop to $0.111. The trading volume for Stellar (XLM) has experienced a significant surge of 3390%, indicating strong bullish sentiment. In terms of technical analysis, on the one-day chart, XLM appears to be overbought, with the Relative Strength Index (RSI) just below the 80-mark. This suggests strong buying strength in the market. Furthermore, XLM is positioned above the 20-Simple Moving Average (SMA) line, reinforcing the dominance of buyers in driving the price momentum. The Moving Average Convergence Divergence (MACD) indicator indicates price momentum and a potential reversal, forming buy signals. The indicator displays two tall green histograms, indicating increasing buy signals. This suggests that the price may continue to rise before retracing, potentially making the current price level an attractive entry point for traders. The Directional Movement Index (DMI) also shows positive signs, with the +DI line (blue) above the -DI line (orange), indicating positive momentum for XLM. The Average Directional Index (ADX) is above the 40-mark, suggesting that price momentum is gaining strength on the one-day chart. In conclusion, Stellar (XLM) has witnessed a significant price surge, with key levels to monitor. The recent legal victory for Ripple has likely contributed to this rally. Traders should remain attentive to support and resistance levels, as well as technical indicators, to navigate the market effectively during this period of heightened volatility.