Key takeaways

Stellar is up 7% in the last 24 hours, making it the best performer among the top 20 cryptocurrencies by economy cap.

On-chain data, derivatives metrics, and momentum indicators collectively support a positive outlook

Stellar (XLM) is showing strong performance above critical resistance levels on Tuesday, as XLM found support around its respective resistance the previous day. 

With growing on-chain activity, positive derivatives data, and bullish momentum indicators, XLM is poised for potential upside.

Bullish sentiment backed by on-chain and derivatives data

CryptoQuant’s latest summary suggests a neutral to bullish outlook for XLM, highlighting large whale orders and favorable conditions in spot markets.

XLM is showing large whale orders with mostly neutral industry metrics, reinforcing a bullish outlook.

On the derivatives front, XLM is displaying positive funding rates. XLM’s OI-Weighted Funding Rate flipped positive on Monday, reaching 0.0032% on Tuesday. This positive rate suggests a bullish economy sentiment, with longs paying shorts.

XLM is showing promising signs of continued strength as it maintains momentum toward a potential breakout.

XLM technical outlook: Rebounds from key support

The XLM/USD 4-hour chart is bearish and efficient as Stellar is trading at $0.1815 at press time. The coin found support around the 50-day EMA at $0.165 the previous day. 

XLM is holding a constructive near-term bias as it stabilizes above the 50-day EMA and the broken descending trendline that now offers secondary support near $0.153. 

The current momentum indicators suggest that XLM could rally higher in the near term. The RSI on the 4-hour chart reads 71, just below the overbought territory. The MACD line is tracking above zero, suggesting buyers retain control while price stays capped above the 100-day EMA at $0.179.

If the rally persists, immediate resistance would be found at the 4-hour TLQ of $0.194, followed by a more substantive barrier at the 23.6% Fibonacci retracement of the broader downswing at $0.201.

A daily candle close above these levels would expose the 200-day EMA at $0.215, which defines a key medium-term hurdle.

On the downside, initial support is seen at the 100-day EMA of $0.179, with another major demand zone at the day’s open near $0.173. 

An extended bearish performance would expose the 50-day EMA at $0.165, with deeper protection at the former descending resistance line-turned-support around $0.153.

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