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Stellar (XLM) has recorded an over 4% increase in price in the last 24 hours as the altcoin formed a golden cross on its charts. A golden cross formation occurs when a short-term moving average crosses above a long-term moving average. It usually signals bullish momentum for an asset and an increase in price outlook.
Stellar price rises but struggles with $0.40 resistance
With the development, Stellar’s price has climbed from a low of $0.3574 to a peak of $0.3831. As of press time, XLM is changing hands at $0.3815, representing a 5.4% increase within this time frame. While Stellar has recorded an uptick, price movement falls short of investors’ expectations.
Notably, XLM has shed over 15% in the last 30 days, dropping from $0.452 to its current level. Many investors believed the coin was consolidating, and a breakout could see it reclaim previous levels. However, the golden cross formation has not been able to push it to flip the $0.40 resistance level.
This is particularly shocking given the level of trading activities Stellar is witnessing. Volume has spiked by 84.95% to $333.21 million, suggesting bulls are busy. This is yet to translate to the major surge that market participants are anticipating.
Can Stellar sustain its outperformance against Bitcoin and Ethereum?
If XLM manages a climb above $0.405, the asset might gather momentum to target $0.47.
Historical data suggests that Stellar has the potential to reclaim $0.50 this September. The asset’s 3.08% growth rate might be all Stellar needs to repeat to attain the price target.
Once the bearish sentiment and volatility that characterized August ease off, bulls might dominate and push prices up. The current golden cross might signal what lies ahead for Stellar.
Already, the asset has flipped Bitcoin and Ethereum in its yearly surge of 288%, compared to 88% and 73% increases for BTC and ETH.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team