Can Stellar break out? – Mapping XLM’s road to $0.51

• 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 decreasing 0.5% in price, while the trading volume dropped by 10.61%.

Following a steady network growth and total value locked in late 2024 to date, the price consolidation could lead to a breakout above this 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, leading to a price consolidation as the $0.28-$0.30 zone becomes the support.

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

Source: X

On-chain metrics and market sentiment suggest…

XLM faces a short-term bearish market sentiment based on price volatility, thus failing to confirm its uptrend momentum.

However, on-chain data shows steady growth in network accounts and Total Value Locked since late 2024.

Source: DefiLlama

The EMA 200 at $0.2428, being below the current price, signals the altcoin’s long-term strength based on TradingView data.

Additionally, the 24-hour Long-Short Ratio stood at 2.31 and has grown to 2.41 in the 4-hour timeframe showing that investors have been buying XLM, at press time.

Source: Coinalyze

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.

At the time of writing, the RSI stood at 44.93 and has grown to 53.15 in the 4-hour timeframe, showing potential accumulation.

A breakout above the bullish flag with strong buying pressure in the next few days could boost XLM’s uptrend momentum toward $0.51.

However, failure to confirm a break above the $0.40 resistance could lead to further consolidation in the $0.28-$0.35 zone. One should watch the altcoin’s buying pressure, trading volume, and price action within its bullish flag.