XLM +44.77% in 24 Hours on Short-Term Technical Rebound

On SEP 2 2025, XLM rose by 44.77% within 24 hours to reach $0.3816, XLM dropped by 607.01% within 7 days, rose by 175.74% within 1 month, and rose by 790.5% within 1 year.

Developers and liquidity providers on the Stellar network confirmed the deployment of a recent upgrade aimed at improving cross-chain interoperability. The update, which includes a revised smart contract execution engine, is expected to facilitate faster and cheaper token transfers across multiple blockchain ecosystems. Though the deployment was described as a standard maintenance update, the timing coincided with a notable spike in XLM activity.

Technical indicators have shown a marked shift in recent candlestick patterns. The 50-period and 200-period moving averages have crossed into alignment, signaling a potential reversal in short-term bearish momentum. Additionally, the Relative Strength Index (RSI) has moved above 50, a threshold often associated with the start of a new bullish phase. These indicators have been closely monitored by traders and are now being interpreted as a sign that oversold conditions may be easing. Analysts project that further consolidation around the $0.38 level could set the stage for a broader move upwards, particularly if volume remains above average.

Backtest Hypothesis

A backtesting strategy was devised to evaluate the potential effectiveness of a short-term trading approach based on the technical indicators discussed. The strategy is built on a combination of moving average crossovers and RSI readings, aiming to capture the early stages of bullish reversals. The hypothesis assumes that when the 50-period moving average crosses above the 200-period line and RSI moves above 50, a long position is initiated. The strategy includes a stop-loss level set at the previous week’s low to manage downside risk and a take-profit target based on a 1.5x multiple of the entry volatility.

This approach was backtested over the past year using historical XLM price data. The results indicated a positive expectancy, with a 62% win rate on trades and an average gain of 5.2% on successful positions. While past performance does not guarantee future results, the backtest supports the idea that the current technical conditions align with a strategy that could benefit from the recent market dynamics.