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Stellar’s (XLM) price experienced some movement. After nearly hitting the lowest level of the past year, it seems to be in a recovery phase. Considering the uncertain movements in Bitcoin, XLM might face a long process ahead.
XLM Comments
Stellar (XLM) price is expected to rise in the coming days due to increased investor interest. The first reflection of the positive market outlook was seen in the Relative Strength Index (RSI). RSI, one of the indicators closely followed by investors, shows significant market activity.
Recently, XLM’s RSI value dropped to the oversold threshold of 30 but then bounced back. Since then, RSI has been rising and is getting closer to surpassing the neutral line at 50.
This situation creates a sense of potential recovery for XLM. Additionally, the optimistic outlook among XLM investors is noteworthy. The positive funding rate in the market indicates that investors are opening positions with an expectation of a rise.
To briefly explain the funding rate, it is a periodic payment made among traders who conduct futures trading to stabilize the price outlook with the spot market.
Positive funding rates indicate that investors with long positions pay those with short positions, while during periods of negative funding rates, the opposite occurs.
When the funding rate is positive, long trades dominate short trades. Conversely, a negative outlook indicates that short positions are more dominant. In the case of XLM, the funding process is positive, showing that there are more investors with long positions expecting a rise.
Will XLM Rise?
XLM price has risen from the existing support level of $0.096 and is currently trading at $0.1002. The next resistance level for XLM is known to be at $0.104, and considering the investors with long positions, breaking this resistance is possible.
Moreover, a move above the $0.104 resistance level could recover losses and potentially raise the XLM price.
Breaking the existing resistance could also change the support level at $0.10. However, such a rise could lead to a higher price point for the altcoin.
