On-chain Metrics and Market Sentiment for XLM

• On-chain metrics showed steady growth in TVL and network accounts as the Long-Short Ratio rose, signaling long-term investor conviction despite price fluctuations.
• Despite a short-term overall bearish market sentiment, XLM HODLers showed a positive investor sentiment.

Stellar [XLM] is flashing mixed signals as the price consolidated inside a bullish flag on the daily chart.

At press time, XLM was trading at $0.3410, after a 0.5% decrease in price, while the trading volume dropped by 10.61%.

Following steady network growth and total value locked since late 2024, this price consolidation could lead to a breakout above the bullish flag.

XLM’s Technical Setup

XLM is trading inside a bull flag that could be a continuation pattern of its previous bullish momentum.

The altcoin faces resistance at the $0.35-$0.40 key zone, which has led to price consolidation as the $0.28-$0.30 zone acts as support.

According to Solberg Invest on X (formerly Twitter), if XLM experiences high buying pressure, this consolidation could result in a breakout above the $0.40 resistance level, targeting $0.51, a previous resistance level.

On-chain Metrics and Market Sentiment Suggest…

Although XLM faces short-term bearish market sentiment due to price volatility, on-chain data indicates steady growth in network accounts and Total Value Locked since late 2024.

The EMA 200 at $0.2428, below the current price, signals the altcoin’s long-term strength according to TradingView data. Additionally, the 24-hour Long-Short Ratio stood at 2.31 and grew to 2.41 in the 4-hour timeframe, reflecting an increase in XLM buying activity as of press time.

What’s Next for XLM?

XLM’s monthly oscillator summary of major indicators signals a buy, despite a 2.63% decrease in Open Interest in the last 24 hours, according to Coinalyze data. As of writing, the RSI stands at 44.93, increasing to 53.15 in the 4-hour timeframe, indicating potential accumulation.

A breakout above the bullish flag with strong buying pressure in the upcoming days could enhance XLM’s upward momentum toward $0.51. However, if it fails to confirm a break above the $0.40 resistance, further consolidation in the $0.28-$0.35 zone may occur. It’s essential to monitor the altcoin’s buying pressure, trading volume, and price action within its bullish flag.