Stellar [XLM] is currently displaying a mix of signals as it remains within a bullish flag pattern on the daily chart.
As of the latest update, XLM was priced at $0.3410, experiencing a slight 0.5% decline, with a 10.61% decrease in trading volume.
With a sustained growth in network activity and locked value since late 2024, the ongoing price consolidation might pave the way for a breakout above the bullish flag formation.
Technical Analysis of XLM
XLM is presently trading within a bullish flag, potentially indicating a continuation of its previous uptrend.
Resistance is noted around the $0.35-$0.40 range, causing price consolidation, while support is seen in the $0.28-$0.30 zone.
As per insights from Solberg Invest on X(formerly Twitter), a strong buying pressure could result in a breakout above the crucial $0.40 resistance level, aiming for the $0.51 target, a key previous resistance level.
On-chain Indicators and Market Sentiment Analysis
Market sentiment for XLM appears bearish in the short term due to price volatility, hindering the confirmation of the bullish momentum.
Despite this, on-chain metrics reveal consistent growth in network accounts and Total Value Locked since late 2024.
The current position of the EMA 200 at $0.2428, below the prevailing price, hints at the altcoin’s long-term resilience, as per TradingView data.
Moreover, the 24-hour Long-Short Ratio sits at 2.31, increasing to 2.41 on the 4-hour chart, indicating ongoing buying activity by investors.