XLM Price Set for 30% Rally, Here’s Why
Key Insights:
- XLM price is poised for a 30% upside rally after successfully retesting the key support level at $0.278.
- Exchanges have recorded $4.33 million worth of XLM outflows, indicating potential accumulation.
- Traders are currently over-leveraged at $0.2774 and $0.289; the rally could accelerate if the XLM price breaks out on either side.
XLM is poised for a massive upside rally amid market uncertainty. It appears to be following its historical pattern. Hovering within an ascending channel, its consistent support and resistance at the boundaries suggest a potential breakout to the upside.
This time, on the lower boundary, XLM has formed a bullish hammer candlestick pattern, which hints that a massive upside rally is on the horizon.
Historically, whenever the asset reached this boundary, it tended to experience a parabolic move, as seen on April 8 and May 7, 2025. Now, with a similar pattern forming, it appears that XLM may be repeating history.
Current Price Momentum
At press time, XLM was trading near $0.2876, marking its highest level in the past 24 hours. During this period, the asset showed an impressive price recovery, rising from $0.278 to $0.287.
This ongoing recovery is garnering significant participation from traders and investors, leading to a 25% jump in trading volume.
The rise in participation, along with the price recovery, is a bullish sign and may help the asset maintain its upside momentum.
XLM Price Action and Key Levels
According to expert technical analysis, if XLM successfully holds above the $0.278 level and closes a daily candle above $0.287, it could pave the way for a 30% upside move, potentially reaching the $0.37 level as it approaches the upper boundary of the channel pattern.
On the other hand, if sentiment shifts and XLM fails to hold the key support level at $0.278, closing a daily candle below it, the asset could experience a price decline of over 12%, potentially dropping to the $0.246 level.
Meanwhile, stochastic patterns and their past values show that when XLM’s price was in the oversold area, it coincided with the lower boundary of the channel pattern, which later skyrocketed. This time, XLM’s stochastic is again in the oversold territory, suggesting a potential repetition of history.
As of now, XLM’s Relative Strength Index (RSI) stands at 50, indicating that it is neither in overbought nor oversold territory. However, traders’ and investors’ interest could move the asset in either direction.
Bullish On-Chain Metrics
On-chain metrics reveal that since XLM’s price began falling from the upper boundary, exchanges have recorded notable outflows, as reported by the on-chain analytics firm CoinGlass.
$4.33 Million Worth of XLM Outflow
The spot inflow/outflow metric shows that during this period, exchanges have witnessed an outflow of $4.33 million worth of XLM.
This substantial outflow indicates potential accumulation and could cause buying pressure, contributing to the upside rally that has been observed on the daily chart.
Traders Over-Leveraged Levels
Meanwhile, traders are also closely following the current market sentiment.
At press time, the strongest over-leveraged level is at $0.2774 on the lower side (support), where traders have built $751,000 worth of long positions, believing the asset will not fall below this level.
On the other hand, $0.289 represents another over-leveraged level, where traders have built $627,000 worth of short positions.
When combining these on-chain metrics with technical analysis, it appears that the bulls are back and currently dominating the asset, suggesting that XLM’s price is on the verge of a massive upside rally.
