Stellar (XLM) prices have emerged from a bullish continuity pattern, surpassing 16% in the last 24 hours. While many traders may expect pullbacks, some technical indicators suggest that this could be the start of a much larger gathering.
However, one on-chain metric throws it at attention flags that can slow things down.
Triple EMA Crossover shows a powerful uptrend setup
The four-hour chart clearly shows trends. This means that the triple EMA crossover begins to show strength. The 20th period’s exponential moving average (EMA) is already above both 50 and 100 EMA, with 50 EMA being closed with similar crossovers above 100 EMA.
Exponential Moving Averages (EMA) is a technical tool that smooths out price data and places more weight on recent prices. It responds faster to recent movements compared to simple moving averages (SMA). “Golden Cross” occurs when the shorter EMA crosses the longer Emma.
Historically, when this triple crossover setup was last made (early July), the star’s price jumped from $0.23 to $0.52. 122% meetings, gifts or acquisitions. This setup currently has a price of over $0.46, so it builds a strong technical momentum, with $0.50 as immediate psychological resistance and $0.52-0.97 as bullish extension zone.
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Netflows shows the risk of early profit
The weekly spot exchange Netflow chart shows the jump from just $724,000 the previous week to $912 million this week. An increase of over 1,159%. This metric tracks the amount of XLM that the XLM flows into exchange. As the flow rises, traders who move the tokens usually direct exchanges to potentially sell.
This is not the first time this has happened. On June 23, 2024, Netflows also reversed positively, with the star’s price quickly falling from $0.26 to $0.24. Another example was December 30th, 2024. At that time, a similar surge in exchange inflows (after weeks of silence) led to short-term price adjustments.
So, while the technical setup looks bullish, traders should be careful about potential pullbacks caused by profit booking pressures in future sessions.
Bull-Bear Power Index validates star price breakouts
The daily chart pole and flag breakout adds even more strength to bullish debate. It starts at a strong price range (pole), followed by a diagonal integration (flag), and breakouts usually raise another leg.
What makes this case stronger is that the Bullbear Power (BBP) index turns green again. This indicator shows the difference between the best price buyer willing to pay and the accepted lowest price seller. Green BBP during breakouts usually checks that the purchase intensity has returned.
As the pole is measured from the $0.23 bottom to the $0.52 top, the same extension from the breakout candle close will set the next great price target near $0.97, assuming the rally continues. Note that the pole consists of the same XLM price rally zone as previously mentioned as part of the triple crossover of conclusions. To form clean-upside movements, the star’s price must first exceed $0.52, the previous swing high, or the highest point of the pole.
However, as highlighted previously, the short-term bullish hypothesis is invalid if the price of a star, led primarily by an increase in sales pressure, is less than $0.36.
Post Stellar (XLM) prices break out with 100% rallies visible. However, one risk remained first manifested in Beincrypto.
