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Stellar (XLM) may be on the verge of a macro trend shift, as a key trend indicator has flashed for the first time in over two years.
Ali, a cryptocurrency analyst, wrote in a recent tweet, "For the first time since January 2022, the SuperTrend indicator signals a potential macro trend shift in Stellar XLM."
The Supertrend indicator is a key technical analysis tool that traders use to discover market trends, manage risk and confirm market tendencies.
The indicator suggests that XLM might be anticipating a new shift, potentially reversing a prolonged period of sideways and bearish movement.
Tomiwabold OlajideStellar has remained relatively quiet in recent months, owing to the cryptocurrency market's lackluster performance. At the time of writing, XLM has dropped 2.38% in the previous 24 hours to $0.248 as the overall cryptocurrency market fell.
The crypto market faced fresh selling pressure in the early Sunday session as traders took gains after the recent bounce and considered macroeconomic developments in the past week.
What's next for Stellar (XLM) price action
While one indicator does not guarantee a price reversal, the signal presented by the Supertrend indicator, as noted by Ali, provides a compelling reason to watch XLM closely in the coming days.
Godfrey BenjaminStellar (XLM) has steadily declined since March 26 after encountering resistance at $0.3022. The cryptocurrency is on track to mark the third consecutive day of drop, reaching lows of $0.245 in early Sunday's session.
A sustained break above the daily moving averages of 50 and 200 at $0.289 and $0.285 would signal a bullish comeback with targets at $0.374 and $0.514.
For the time being, the market will be watching to see if this trend signal holds — and whether Stellar is truly gearing up for a macro shift. On the other hand, if the declines further, support is envisaged at $0.226.
Vladislav Sopov
Dan Burgin