Stellar (XLM) is nearing a key price level that has historically triggered bullish rallies, leading traders to speculate about another potential move higher. The token is currently trading around $0.243 after recovering slightly, with analysts observing patterns reminiscent of previous strong rebounds.
XLM’s past encounters with the $0.23 support zone have yielded significant gains, including a 33% rise in March, a 48% jump in April, and a staggering 133% surge in July. The recent bounce from this level is triggering renewed interest from traders who are observing historical signals.
Meanwhile, key indicators suggest that the current price action may not translate into a repeat of past rallies. While a similar reaction appears plausible based on XLM’s history at this level, no confirmation has been made yet.
The token’s price is currently testing the $0.23 support zone after a significant decline from the $0.40 range. This recent drop follows a downward trend with momentum lacking compared to earlier instances of reaching this level.
**Technical Signals and Outflows**
The technical outlook for XLM remains mixed. The asset is currently trading below all key exponential moving averages on the daily chart, with the 20-day EMA at $0.26 and the 50-day near $0.29. To signal a potential shift in sentiment, a break above these levels would be necessary. The RSI stands at around 38, indicating that selling activity has subsided but hasn’t reversed entirely.
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In addition, data suggests a positive inflow of XLM to spot exchanges.** Exchange flow data from November 24 shows a net inflow of $685.85K into the market. This marks the first positive inflow in months, coinciding with a decrease in price. However, the small inflow may reflect short-term positioning strategies rather than a definitive shift in sentiment.
**The Bottom Line**
While XLM’s history at the $0.23 support level suggests potential for further gains, it remains to be seen if similar rallies will repeat themselves. The market is watching closely for indicators of a sustained trend reversal, with traders and analysts alike keenly awaiting confirmation from upcoming price actions.
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