Stellar (XLM) remains under short-term pressure as weak momentum and cautious trading activity weigh on its outlook. However, growing institutional adoption strengthens the long-term narrative, while analysts continue to see potential for a major bullish trend if key resistance is reclaimed.
XLM Price Setup Points to Explosive Bullish Move
Stellar (XLM) is attracting renewed attention as crypto analyst MikybullCrypto predicts that a major bullish phase could be approaching. The analyst has repeatedly highlighted XLM’s long-term potential, suggesting that the token remains in the early stages of a much larger market move toward $5.
Source: MikyBullCrypto’s X Post
According to MikybullCrypto, traders should pay close attention to the current setup because the anticipated rally could be explosive. While the short-term chart remains under pressure, the bullish thesis is based on the possibility that XLM eventually breaks out of its current consolidation and enters a stronger expansion phase to $5.
Such forecasts remain speculative, however, as XLM still needs to overcome several technical barriers before confirming a meaningful trend reversal.
Also Read: XLM Price Eyes $0.30 as Bullish Setup Meets Expanding USDT Liquidity
XLM Price Faces Key $0.18 Resistance
TradingView data shows that Stellar has experienced a bearish trend since reaching an August peak near $0.22000. Although XLM staged a short-lived recovery in early September and climbed toward $0.19700, the rebound failed to develop into a sustained breakout.
The cryptocurrency has pulled back towards $0.17770. Price action over the past period has seen the formation of lower highs, which shows that sellers have been retaining control of the short-term pattern.
Source: TradingView
In addition to that, it is trading lower than its 20-period, 50-period, 100-period, and 200-period exponential moving averages. All of these technical indicators are located above the $0.18000 level. It means that XLM needs to break out this resistance level.
Such a move higher might mark the first signal that buyers have begun to gain renewed traction. Otherwise, the bigger short-term picture continues to carry risks of further consolidation or weakness.
RSI Signals Weak Momentum for XLM
The momentum indicators are also on the side of the bears at the moment. This is because the 14-period Relative Strength Index is sitting at around 42.16, which is below the signal line that is at around 45.47.
Despite the fact that the RSI is not yet oversold, the fact that it is trading below the important mid-range level indicates poor buying pressure. This implies that XLM needs to build up further before recovering.
A positive response from the RSI, combined with a reversal above the EMAs, will support the bulls. On the other hand, a further decline may keep XLM below resistance for an extended period.
XLM Market Activity Loses Momentum
Another signal of concern is CoinGlass data. XLM’s trading volume fell by 46.66% and reached $83.32 million. At the same time, open interest fell by 3.81% to $176.76 million.
Source: Coinglass
The concomitant decrease in both metrics implies that there has been reduced participation in the market. It appears that traders are becoming less exposed or waiting for direction before increasing their positions.
The possibility of a breakout being considered valid may require an actual boost in the number of shares traded. An uptrend boosted by greater participation can show that the buyers have returned rather than just causing a rise in the token price.
Stellar Gains Institutional Momentum With US Bank
Although there is a less favorable market structure in the short term, Stellar is still gaining traction through innovations related to conventional financial organizations.
Stellar recently pointed out that the pilot run of USBDC, which is a U.S. dollar-backed stable coin built by US Bank using the blockchain technology, was successful. This is an important case where traditional banks are trying to experiment with blockchain technology.
The USBDC is one of the stablecoins offered by banks and built on the public blockchain. This shows that the Stellar network is increasingly becoming a choice for experimenting with digital assets. This could add value to the future narrative around XLM.
The combination of adoption by institutions together with a bullish technical setup in the long term is a factor that allows investors a chance to pay close attention to the asset. Despite this, there are still some technical factors that need to be resolved for the predicted megabull run by MikybullCrypto to be realized.
Also Read: XLM Price Breakout Signals Rally Toward $0.43 as Network Activity Improves
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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