Stellar (XLM) is stirring up the crypto market, posting an impressive 177% gain in just the past two weeks, with its current price at $0.23.
This spectacular breakout broke out of a previously extended downtrend channel, raising hopes of a steady and sustainable uptrend in the future.
XLM Breaks Out of Extended Downtrend Channel
For months, XLM was stuck in a downtrend channel, creating uncertainty among investors. However, when it broke above a key resistance level at $0.1236, it sent a strong signal of a trend change.
Shortly thereafter, XLM price surged to $0.2533, more than doubling the previous channel low.
Technical indicators also reinforce this positive outlook. The MACD shows signs of a bullish crossover, with the MACD line reaching around 0.0140, moving above the signal line at 0.0139.
The Bollinger Bands have widened significantly, reflecting increased volatility. Specifically, the upper band is around $0.2125, the lower band is at $0.0347, while the SMA is around $0.1236.
At the time of writing, XLM is trading at $0.23, well above the upper band, suggesting that strong momentum is driving the coin higher.
The decline in social discussion volume raises questions
It is worth noting that, despite the surge in XLM price, the social discussion volume of the coin has dropped sharply, from 142 to 49 in just the past 24 hours. This suggests that the current rally may not have attracted widespread attention from retail investors. Instead, it is more likely that the rally is being led by institutions or large traders.
The disparity between price action and social media discussion is a sign of caution, as strong retail participation is often a key factor in sustaining a sustained rally.
If social discussion volume picks up again, this could add further support to the rally, while also attracting more interest from the broader market.
Read more: Signs Indicating Bitcoin’s Rally May Be Slowing Down
Is this the time to buy XLM?
The combination of a long-term bearish channel breakout and positive technical signals has created a compelling case for Stellar’s rally in the near term. However, the decline in social discussion volume suggests that this could be a cautious rally, led primarily by institutions.
If XLM can sustain support above $0.25 and attract broader interest from retail investors, this could signal the start of a sustainable bullish trend in the future.
