The price of Stellar (XLM) has shown a sharp rise, increasing by over 80% in just a week, breaking through a resistance level that had constrained its movement since last December.
Overview of XLM Rally
Recently, XLM's price broke through the resistance level at $0.26, signaling the start of a significant rally. This rally has led to an increase of more than 85%, indicating a strong recovery after a prolonged downtrend.
Technical Analysis and Resistance Levels
The current XLM price is approaching a key resistance level at $0.52, which aligns with the 0.236 Fibonacci retracement level. A breakout above this level could pave the way towards the 1.618 Fibonacci level near $1. However, due to the current high RSI value, which exceeds 86, some consolidation around $0.52 is likely before any further upside.
Factors Driving the Growth
The explosive rise of XLM appears to be driven by a mix of increasing investor interest, ecosystem growth, and heightened on-chain activity. Notably, the supply of stablecoins on the platform has surged to a record $647 million, significantly up from earlier this year.
The surge in XLM's price highlights investor interest and ecosystem development, though upcoming resistance levels and high RSI readings may require a correction before any potential new uptrend.
