Stellar (XLM) has increased by almost 19% in the last seven days, and its market capitalization is now close to $ 9 billion. The RSI jumped above 70, while the ADX shows an upward trend force, and the EMA lines confirm the bullish momentum.
XLM holds an upward trend and pushes the keys to resistance around $ 0.30. However, if the support levels fail, the signs of overheating could cause short -term setbacks.
Does stellar overheat? RSI hits 71.5
Stellar is currently showing a strong bullish momentum. Its relative force index (RSI) increased to 71.5, against 55.2 only three days ago.
This rapid increase highlights an increase in the purchase activity, reflecting the growing confidence of investors from the short -term prices of XLM. The net movement also suggests that Stellar quickly went from a more aggressive neutral configuration, capturing attention among the traders who closely monitor Momentum indicators for input and output signals.
Such a rapid increase in RSI often indicates intense demand, but it can also point out that asset approaches stretched conditions, which can increase volatility.
The RSI, or relative force index, is a technical indicator used to assess the strength and speed of recent price movements of an asset. It operates on a scale of 0 to 100, where readings greater than 70 generally suggest that an asset is exaggerated, and readings less than 30 indicate occurrence conditions.
When the RSI crosses 70, he often warns that the assets could be due for a break, a consolidation or a minor correction like purchase overheating.
With the Stellar RSI now at 71.5, XLM has officially entered the exaggerated territory. This could mean that if the bullish feeling remains dominant, the price is increasingly vulnerable to withdrawals if the momentum slows down or that traders are starting to lock profits after the recent wave.
XLM Trend Momentum is built as the purchase pressure dominates
The stellar directional movement index (DMI) signals of the trend trend trend graph. Its average directional index (ADX) is currently at 37.41, against 26.56 barely two days ago.
This strong increase in ADX suggests that the trend is gaining strength, confirming that market players are firmly attached in the dominant direction.
An ADX greater than 25 generally indicates the presence of a significant trend, and with XLM ADX now approaching 40, the upward trend is well established and becoming more and more powerful, attracting more attention from Momentum merchants and technical analysts.
ADX, or average directional index, measures the strength of a trend. This does not indicate management. It moves between 0 and 100. Readings less than 20 show a low or non -existent trend. Readings above 25 suggest that a strong and lasting trend is underway.
With the ADX, the DMI follows two other important lines. The positive directional indicator (+ DI) measures the upward pressure, while the negative directional indicator (-DI) measures the pressure down.
XLM’s + DI is now at 33.59. It was at 22.81 two days ago, but was slightly down compared to a recent peak of 36.47. This shows a certain short -term volatility, even with high overall purchase pressure.
Meanwhile, the -Di fell suddenly to 9.91 from 19.8 three days ago. This indicates that the sales pressure has been considerably weakened.
Together, these movements confirm that XLM remains firmly in an upward trend. However, small fluctuations in + Di suggest that if the bulls still control, the pace of purchases could face brief breaks or small withdrawals as the rally matures.
Intact stellar upward trend, but the key support at $ 0.279 must hold
The exponential mobile mediums of Stellar (EMAS) flash solid bruise signals, the short-term EMAs are currently positioned above the long-term EMA. This classic model reflects a sustained ascending momentum.
The next level of major resistance is around $ 0.30, a psychological barrier that could briefly slow down XLM’s advance.
However, if Stellar manages to break down more than $ 0.30, the upper path opens at $ 0.349 and potentially $ 0.37, which will mark the first time that XLM has been negotiated above $ 0.35 since March 2.
Leaving, the level of support at $ 0.279 became crucial to maintain the bullish structure.
A new test of this support could serve as healthy consolidation before another higher leg, but a clear loss of $ 0.279 could trigger a more significant correction.
If this happens, the XLM price could slide towards the next major support at $ 0.258, and if the sales pressure is accelerating, deeper retractions to $ 0.239 or even $ 0.20 are possible.
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