Stellar (XLM) is gearing up to form a golden cross that has not been seen on its monthly chart before. This technical structure could indicate future movement for the token.
What is a Golden Cross?
A golden cross is a technical signal where a short-term moving average crosses above a long-term moving average, typically viewed as a bullish signal. In the case of Stellar, the 23-month moving average is about to cross the 50-month moving average.
The Connection Between XLM and XRP
Stellar has a long history of correlation with XRP. In December 2024, XRP also formed a golden cross, which occurred after its sharp rise, where the token surged by 283.9% in November. XLM demonstrated an even stronger gain in the same month, jumping 468% without crossover signals.
Current State of XLM
Currently, XLM is trading well above both its 23- and 50-month moving averages. If the crossover occurs, it will mark the first instance in XLM's history for this time frame. Notably, while the technical signal doesn't guarantee a repeat of previous successes, considering its links to XRP movements means it shouldn't be overlooked.
The current situation with XLM shows that the token is in a different position compared to several months ago. While there is no extreme news or predictions, the current technical indicators may suggest interesting opportunities for the future.
