Stellar (XLM), often seen as a rival to XRP, may be poised for a price rebound, according to market insights. A well-known crypto analyst pointed out a possible buy signal on the daily chart of XLM, but there is a catch.
The TD Sequential, a popular technical indicator used to identify potential trend reversals or continuations in asset prices, is what is being used to identify the buy signal. It looks at a series of candlesticks to figure out if the market is overbought or oversold, and it gives traders a heads-up on when to make a move. Right now, it looks like XLM could be on the rise as long as it stays supported at $0.33.
If we want to see a rebound in XLM, the market needs to make sure that the $0.33 support level holds. That level is like a psychological and technical floor, and if it holds, it could lead to more buying, which is good for the market. But if it breaks down, it could signal a bearish trend, which would make it harder for XLM to bounce back.
The TD Sequential presents a buy signal on the #Stellar $XLM daily chart, anticipating a price rebound if the $0.33 support level holds! pic.twitter.com/cVjNwJd4O8
— Ali (@ali_charts) December 23, 2024
In short, Stellar's price movement is a pretty exciting opportunity for traders, but it all comes down to the key $0.33 level. The next few days will be important in determining whether XLM can take advantage of the current bullish trend or whether it will continue to fall.
XLM and XRP's story
Stellar has always been a competitor to XRP, as both cryptocurrencies focus on cross-border payments and financial inclusion. They both have similar roots, with Stellar being cofounded by Jed McCaleb, one of the founders of Ripple.
While XRP is aimed at financial institutions, XLM is more about bringing affordable financial services to people who do not have access to them. But even with these differences, they are often competing for a share of the blockchain payments ecosystem.
