Stellar (XLM) Primed for a 92% Surge—Is This the Start of a Bullish Frenzy?

Stellar's XLM rockets toward a potential breakout—fueling speculation of a major rally. Here's why traders are buzzing.

The Setup: A 92% Springboard

XLM's recent surge isn't just noise—it's the kind of momentum that makes technical analysts reach for their trendlines. The 92% climb signals growing institutional interest and retail FOMO in equal measure.

The Big Question: Sustainable or Speculative?

While the charts scream bullish, skeptics point to the usual suspects: overleveraged positions and crypto's habit of turning 'sure things' into cautionary tales. (Remember when 'stablecoins' weren't ironic?)

The Bottom Line

Whether this marks Stellar's mainstream moment or just another crypto pump, one thing's clear—XLM's volatility is back on the menu. Buckle up.

Support Turns Into Base

Based on reports, the old resistance zone at $0.31 up to $0.37 has flipped into a solid support area. That shift gives buyers a clear line in the sand. Wave 3 in the Elliott count seems to be stretching higher, suggesting there’s room for more upside if momentum holds.

Derivatives Activity Paints A Mixed Picture

Spot volume is surging. But derivatives tell a slightly different story. CoinGlass figures show that derivatives trading volume slipped 2.25% to $3.80 billion even as Open Interest jumped 29% to $496 million. The rise in Open Interest means more new positions are on the table. Yet funding rates indicate traders aren’t over‑leveraging just to chase quick gains.

The Relative Strength Index (RSI) is sitting NEAR 89, well above the usual overbought threshold of 70. That level often triggers short‑term pullbacks. Still, in a strong uptrend, RSI can hug lofty readings for longer than many expect. The MACD line at 0.02 lies comfortably above its signal line at 0.01, and the growing histogram bars hint that bullish momentum is not fading anytime soon.

Analysts point out that stellar has logged nine straight years of higher lows. That pattern has held through bear markets and bull runs alike. If that trend stays intact, it could pave the way for a fifth wave—or a Wave C—move similar to past rallies in major altcoins.

Traders are keeping a close eye on volume and on‑chain signals. Sharp inflections in RSI or a sudden shift in funding rates could spark profit‑taking. A pullback toward the $0.35–$0.38 zone WOULD still leave XLM in a bullish setup, and it might give fresh buyers a better entry point.

Based on the mix of strong on‑chain support, robust momentum indicators, and a long‑term uptrend, Stellar looks set for more gains. But with 92% surge in a week, a pause or small correction wouldn’t be a surprise. Traders and investors will be watching closely as sessions unfold to see if XLM can push past $0.50 or if it takes that breather first.

Featured image from Meta, chart from TradingView