Stellar (XLM) aims to bounce back as the bulls defend the important support level.

Stellar (XLM) is currently trading around the 0.258 USD mark at the beginning of the week, continuing to hold at an important support zone and sending out initial recovery signals. On-chain, network activity is becoming more vibrant as buying pressure rises and “whales” make a strong push for accumulation, indicating a potential shift towards the positive. Meanwhile, the bullish divergence signal on the RSI indicator further reinforces the short term recovery outlook, while traders await confirmation signs to open up a new upward movement.

On-chain data of Stellar leans towards a price rise

Aggregated data from CryptoQuant continues to reinforce the optimistic outlook for XLM, as both the Spot and Futures markets simultaneously record large-scale trades from whales alongside overwhelming buying pressure. These signals suggest that XLM may be preparing to enter a new uptrend.

Price Forecast for Stellar: XLM Shows Bullish Divergence

The price of Stellar was strongly rejected at the resistance zone of 0.297 USD last week, resulting in a nearly 12% decline. As of Monday afternoon, XLM is fluctuating around the mark of 0.258 USD, temporarily seeking a balance point after the adjustment.

XLM/USDT Daily Chart | Source: TradingViewOn the daily timeframe, the chart shows the emergence of a bullish divergence on the RSI indicator. Specifically, while the price made a lower low on Sunday, the RSI recorded a series of higher highs — a bullish divergence signal indicating that selling momentum is weakening. This is often an early sign of a potential reversal or at least a short term bounce back.

If demand returns, XLM could extend its rise and move towards testing the resistance zone of 0.297 USD. Conversely, if selling pressure continues to dominate, the price could retreat further to the important support zone at 0.221 USD on the weekly timeframe.

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