Stellar [XLM] Surges 10.34% as Bullish Momentum Builds

Stellar [XLM] has finally broken its 8-month downward trend, with a significant price surge. The altcoin has risen from a local low of $0.258 to a monthly high of $0.305, marking a 10.34% daily gain. This breakout has sparked renewed bullish interest, particularly in the derivatives market.

Analysts are now eyeing a potential rally, with popular crypto analyst Ali Martinez suggesting a move towards $0.39. Martinez's prediction is based on an inverse head and shoulder pattern, which often signals a trend reversal. With Stellar retesting $0.24 as support, the right shoulder of the pattern appears complete, indicating a potential rally towards $0.39, provided buyers maintain control.

The strong upward momentum is further supported by Stellar's Relative Strength Index (RSI), which has surged to complete a bullish crossover. The altcoin's RSI has risen to 66.45, while its Moving Average (MA) remains at 54, signaling higher buying pressure. This buying pressure has strengthened the altcoin's price upward momentum, with the MACD surging to 30.43 after a bullish crossover two days ago, confirming market strength.

Buyers have particularly dominated the futures market, with Taker Buy dominant in the Futures Taker CVD. This suggests that buyers are mostly getting into the market to take strategic positions, awaiting the next move. On weekly timeframes, sellers are absent as per the futures CVD, indicating a strong bullish sentiment among Stellar buyers.

The shift in market sentiment is further evidenced by the Funding Rates Aggregated by Exchange, which has turned positive across all exchanges over the past day. A turn to positive territory indicates a shift in market sentiment, with investors getting into the market to take long positions. Thus, long positions are currently dominating the market, reflecting strong bullish sentiment among Stellar buyers.

If the prevailing sentiment holds, Stellar will find the next significant resistance level around $0.34. However, if short-term holders use this rally to exit breakeven positions, XLM could drop to $0.281 or even $0.25. Still, with momentum and structure on the bulls' side, the upside case remains strong, at least for now.