Stellar (XLM) Eyes $0.52 Rally as Bullish Pennant and Data Align
XLM is consolidating at $0.42 in a bullish pennant—a classic setup that often leads to price continuation.
Quick overview
- XLM is currently consolidating at $0.42 within a bullish pennant pattern, indicating potential price continuation.
- Support levels are identified at $0.40-$0.36, with traders monitoring the 50-day EMA at $0.35 as a stop loss.
- Derivatives data shows a long/short ratio of 1.14, suggesting increased bullish sentiment among traders.
- On-chain metrics indicate smart money accumulation, while low retail activity historically precedes sustained price increases.
XLM is consolidating at $0.42 in a bullish pennant—a classic setup that often leads to price continuation. After a big run, this pattern is formed by converging trendlines connecting higher lows and lower highs. A breakout above the upper trendline could lead to a big move up.
The structure is showing growing momentum for the bulls. Currently XLM has support at $0.40-$0.36 where accumulation interest is high. Traders are watching the 50-day EMA at $0.35 as a stop loss. If the breakout is confirmed the next resistance is at the July 18 high of $0.52 and then the November high of $0.63.
The RSI on the daily chart is supporting the price structure at 54—up from the 50 level, indicating buying pressure is building.
Derivatives Data Confirms Bullish View
Derivatives market positioning is in line with the pennant narrative. Coinglass data shows the long/short ratio for XLM at 1.14—the highest in over a month. More traders are betting on upside.
Funding rates are also bullish:
- Current funding rate: 0.0085%
- Positive funding means longs are paying shorts—often a sign of bullish sentiment.
Traders are positioning for more upside without overcrowding the market which reduces the chance of sudden reversals due to leverage.
Smart Money Accumulation
On-chain metrics show smart money accumulating XLM. According to CryptoQuant’s Spot Retail Activity Through Trading Frequency Surge, retail activity is low—a historically bullish sign for XLM.
Low retail participation often clears the way for institutions or long-term investors to buy at good prices. Past price trends show that reduced retail speculation precedes sustained upside.
Key Bullish Factors:
- Bullish pennant at $0.42
- RSI up from 50
- Long/short ratio at a monthly high of 1.14
- Positive funding rate of 0.0085%
- Low retail activity for price to growUnless $0.35 EMA is broken.
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