XLM Bulls Eye $0.51 as Token Shows Resilience Amid Mixed Signals

Stellar's XLM token has been displaying mixed signals in recent market conditions, with on-chain metrics and investor sentiment providing a nuanced picture of its potential trajectory. Despite a short-term bearish market sentiment, XLM has shown steady growth in total value locked (TVL) and network accounts, indicating long-term investor conviction. The price of XLM has been consolidating within a bullish flag on the daily chart, with the current price at $0.3410, a 0.5% decrease from the previous day.

Technically, XLM is trading within a bull flag, which could be a continuation pattern of its previous bullish momentum. The altcoin faces resistance at the $0.35-$0.40 key zone, leading to a price consolidation as the $0.28-$0.30 zone becomes the support. According to Solberg Invest, if XLM faces high buying pressure, the consolidation could lead to a breakout above the $0.40 key resistance level, targeting the $0.51, a previous resistance level.

On-chain metrics and market sentiment suggest that XLM faces a short-term bearish market sentiment based on price volatility, failing to confirm its uptrend momentum. However, on-chain data shows steady growth in network accounts and Total Value Locked since late 2024. The EMA 200 at $0.2428, being below the current price, signals the altcoin’s long-term strength. Additionally, the 24-hour Long-Short Ratio stood at 2.31 and has grown to 2.41 in the 4-hour timeframe, showing that investors have been buying XLM at press time.

Looking ahead, XLM's monthly oscillator summary of major indicators signals a buy despite a 2.63% decrease in Open Interest in the last 24 hours. At the time of writing, the RSI stood at 44.93 and has grown to 53.15 in the 4-hour timeframe, showing potential accumulation. A breakout above the bullish flag with strong buying pressure in the next few days could boost XLM’s uptrend momentum toward $0.51. However, failure to confirm a break above the $0.40 resistance could lead to further consolidation in the $0.28-$0.35 zone.