Stellar (XLM) has seen a sharp rebound in its price, particularly over the last two days. The token is recovering steadily after the market-wide crypto correction at the start of the year and appears to be building some decent bullish breakout. But where will the price action go next? Well, here are some highlights first:
At press time, XLM was trading for $0.2701, up nearly 7% over the last 24 hours alone.
The token is also trading well above its 25- and 50-day exponential moving averages, but it’s still a bit off its 200-day EMA.
XLM plunged to a six-month low earlier this year but has since paired some of those losses with a 12% upswing.
Data source: Tradingview.com
Stellar (XLM) – Price action and prediction
The current sharp rebound on XLM follows the same trend in the broader market. Most altcoins are rising, but XLM is doing it much faster. In the short term, we see the coin bouncing off between $0.2599 and $0.2732.
But it will be interesting to see how long XLM can sustain gains above the 20- and 50-day EMAs. If it consolidates around that price, then a sustained bullish uptrend could push the token towards its 200-day EMA in the near term.
Despite this, XLM must cross over the $0.3 mark for any serious uptrend to hold. Although the token has traded below this crucial resistance for the best part of 2 weeks, current momentum could push it above it.
Should you buy Stellar (XLM)?
Despite the recent price gains, Stellar (XLM) is still trading way below its 6-month high and its yearly highs for 2021. As sentiment improves in the crypto market over the coming weeks, we expect XLM to also see more gains. Besides, the long-term fundamentals on the token are as stellar as the name suggests.