- Stellar (XLM) receives a Supertrend signal not seen since January 2022, signaling a possible change in market direction.
- A move above key daily moving averages could strengthen the case for a bullish recovery in the coming sessions.
- Current price weakness highlights market caution as traders assess broader trends and recent gains across the crypto market.
Stellar (XLM) may be on the verge of a significant change in its long-term trend as a technical indicator flashes a notable signal for the first time in over two years. Cryptocurrency analyst Ali highlighted that the Supertrend indicator, a popular tool among market participants, has shown a potential trend reversal for XLM. The indicator last presented a similar reading in January 2022.
The Supertrend indicator is used to determine market direction and manage trading risk. According to Ali’s recent update, the latest reading suggests that XLM may be breaking free from an extended period of sideways and bearish movement. While the signal alone does not confirm a long-term shift, it has drawn the attention of technical analysts monitoring potential changes in the broader altcoin landscape.
Price Movement Reflects Mixed Market Signals
XLM experienced a 2.38% decrease within the last day of trading at $0.248. XLM dropped alongside all other cryptocurrencies despite a recent market recovery since traders took profits. Market developments at the macroeconomic level within the past week played an essential role in the reserved market atmosphere.
Stellar faced resistance at $0.3022 on March 26 and has since declined for three straight sessions. The current trajectory shows XLM reaching intraday lows near $0.245, placing it below key short-term support levels. For a clearer bullish scenario to emerge, XLM would need to break above the 50-day and 200-day moving averages, currently positioned at $0.289 and $0.285, respectively.
If the price continues to trend downward, support is expected at $0.226. A failure to hold above this zone may expose the asset to additional weakness. On the upside, a close above the moving averages could open targets at $0.374 and $0.514, reinforcing the possibility of a new price cycle.
