Stellar (XLM) Primed for Explosive Breakout Following 91% Weekly Rally

Stellar's XLM isn't just climbing—it's moonwalking past resistance with a 91% weekly gain. The sleeping giant of payments tokens just woke up hungry.

Technical breakout or bull trap? Chartists spot a textbook ascending triangle forming as trading volume spikes. Meanwhile, Bitcoin maxis scramble to explain why their 'digital gold' is getting upstaged by an actual utility project.

With RSI levels not yet overheated, this could be the launchpad before XLM retests its 2021 highs. Or just another reminder that in crypto, the 'fundamentals' are whatever makes your bags heavier today.

Support Zones Rise, Bullish Wave Formation Strengthens

Stellar’s price surge is backed by technical strength. Analysts have confirmed that the key support zone has shifted upward to the $0.314–$0.376 range, a bullish development that suggests the previous resistance has now been flipped into a base. This shift is considered a key indicator in technical analysis, often signaling the beginning of a strong upward trend.

In terms of Elliott Wave structure, analysts suggest that XLM is currently in an extended Wave 3 pattern, known for producing powerful price runs. If this holds true, Stellar could be entering the steepest part of its rally phase, with more upside likely before any meaningful correction sets in.

RSI and MACD Confirm Bullish Strength

Technical indicators reinforce the bullish narrative. The Relative Strength Index (RSI) has climbed to 89.54, well beyond the typical overbought threshold of 70. While such a reading often signals a potential pullback, it can also indicate strong ongoing momentum in trending markets. In past bull runs, RSI has remained overbought for extended periods without major corrections.

The MACD (Moving Average Convergence Divergence) also paints a bullish picture. The MACD line is significantly higher than the signal line, creating a strong bullish crossover. Additionally, rising histogram bars support the idea of increasing buying strength. This setup suggests the uptrend has solid backing and isn’t likely to reverse in the immediate short term.

Derivatives Data Shows Surging Market Activity

According to CoinGlass data, Open Interest (OI) in Stellar futures surged 29.36%, reaching $495.90 million, even as volume dropped slightly by 2.27% to $3.81 billion. This divergence between OI and volume suggests that traders are taking new long positions and preparing for further upside. The OI-weighted funding rate stands at 0.0064%, reflecting positive market sentiment without excessive leverage—a healthy sign for a sustainable rally.

Such spikes in OI typically indicate growing confidence among derivatives traders and an influx of capital betting on continued gains.

Nine-Year Trendline Reinforces Long-Term Bullish Setup

Analysts from XForceGlobal have drawn attention to Stellar’s impressive nine-year trend of higher lows, a rare signal of long-term strength and market resilience. Despite being overshadowed by larger-cap cryptocurrencies in past cycles, Stellar has consistently retained investor interest and slowly built a reliable support structure.

If this historical trend continues, analysts predict that XLM could enter a fifth wave or wave C breakout, similar to XRP’s past explosive movements. With rising volume, a solid trendline, and bullish technical indicators, Stellar appears well-positioned to mirror previous altcoin success stories.

What’s Next for Stellar (XLM)?

Given the current momentum and technical backdrop, a break above the $0.50 psychological level could unlock further gains. The next resistance levels lie near $0.52 and $0.58, with the potential for XLM to test $0.60 and beyond if market sentiment remains bullish and broader crypto conditions stay supportive.

On the downside, initial support now sits between $0.376 and $0.314, which could provide a cushion in the event of short-term consolidation or profit-taking. However, the bullish trend remains intact as long as price action stays above this newly established support range.

Final Thoughts

Stellar (XLM) is no longer flying under the radar. With a 91% weekly gain, explosive trading activity, and compelling technical signals across multiple indicators, it has become one of the most-watched assets in the current market cycle.

Rising Open Interest, bullish MACD and RSI readings, and a long-term trend of increasing lows suggest that the rally may still be in its early stages. If the current wave extension plays out, traders could see XLM targeting $0.60 or higher in the NEAR term.

For now, all eyes are on the $0.50 breakout. Should Stellar pierce this resistance with volume confirmation, the next leg of the bull run could unfold rapidly—making XLM a standout altcoin to watch in the weeks ahead.