Stellar (XLM) Flashes Mixed Signals as the Price Consolidates Inside a Bullish Flag

XLM’s technical setup, on-chain metrics, and market sentiment suggest the altcoin could break out of a bull flag and rally to $0.51.

Stellar Lumens [XLM] flashed mixed signals as the token price consolidated within a bullish flag on the daily chart. At press time, XLM was trading at $0.3410, having seen a 0.5% decrease in price, while trading volume dropped by 10.61%.

However, following a steady network growth and total value locked from late 2024 to date, the price consolidation could lead to a breakout above this bullish flag.

Taking a closer look at XLM’s technical setup, the altcoin was seen trading within a bull flag that could be a continuation pattern of its previous bullish momentum.

The token faced resistance at the $0.35-$0.40 key zone, leading to a price consolidation as the $0.28-$0.30 zone acted as support.

According to Solberg Invest on X(formerly Twitter), if Stellar Lumens faced 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.

On the other hand, XLM’s technical setup showed a short-term bearish market sentiment based on price volatility, thus failing to confirm its uptrend momentum.

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

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

Moreover, 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.

A glance at XLM’s monthly oscillator summary of major indicators signaled 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.