Stellar Price Prediction: XLM is trading within a bullish triangle pattern, and long positions may aim for a high of $0.52.

Today (31) during the Asian session, the price of Stellar (XLM) is within a bullish triangle pattern, reported at 0.42 USD, suggesting that the bullish momentum may continue. On-chain and derivatives data indicate that the retail investor's cautious sentiment may have created space for the accumulation of smart money, while the increase in positive interest rates and bullish bets has also strengthened the bullish sentiment. All of this suggests that XLM is expected to surge to a high of 0.52 USD.

Derivatives of XLM and on-chain data indicate a possible reversal

The derivative product data for XLM suggests a potential reversal. According to Coinglass, the long-short ratio for XLM reached 1.14 on Thursday, marking the highest level in over a month. A ratio above 1 indicates that more traders are betting on a price pump for XLM.

(Source: Coinglass)

The financing interest rate data for XLM is positive, at 0.0085% on Thursday, indicating that bulls are paying bears. Typically, a positive value (bulls paying bears) indicates bullish sentiment, while a negative value (bears paying bulls) indicates bearish sentiment.

(Source: Coinglass)

CryptoQuant shows through the data of surging trading frequency in the spot retail investor activity that XLM currently has low retail speculation activity. Historically, when XLM has low retail speculation activity, it paves the way for sustained, trend-based volatility, thereby pumping its price.

(Source: CryptoQuant)

XLM Price Prediction: Forming a Bullish Triangle Pattern

XLM is trading within a bullish triangle pattern, which is formed by connecting two trend lines (connecting the highs and lows). This pattern is favorable for a bull market as it forms after a significant price pump, and a breakout indicates that the upward momentum will continue. As of Thursday when this article was written, XLM's trading price within this pattern is approximately $0.42.

Investors looking to accumulate XLM in the over-the-counter market can operate within the support range between $0.40 and $0.36, and set a stricter stop-loss below the 50-day exponential moving average of $0.35.

If XLM breaks through the triangular flag pattern, it may continue to pump until the high of 0.52 USD on July 18. If it successfully closes above that level, it may continue to pump until the high of 0.63 USD in November.

The relative strength index (RSI) on the daily chart is 54, having rebounded from the neutral level of 50 and moving upward, indicating that bullish momentum is strengthening.

However, if XLM faces a pullback, its downtrend may extend to the 50-day EMA of $0.35.

(Source: Trading View)

Conclusion:

XLM is currently in a bullish symmetrical triangle pattern, with long-to-short ratios, financing interest rates, and retail investor activity data all showing positive signals. If it can successfully break through the pattern resistance, XLM is expected to surge to a high of $0.52. Investors should closely monitor its price movements to seize potential investment opportunities.