Key takeaways
XLM is trading above $0.24 after adding 2% to its value in the last 24 hours.
The cryptocurrency eyes a breakout as the Stellar blockchain hits a new TVL all-time high.
Stellar’s TVL hits a new all-time high
XLM has performed positively over the last 24 hours, adding 2% to its value during that period. The coin is now trading above $0.24 after adding over 10% in the previous two days.
The positive performance comes as Stellar’s Total Value Locked (TVL) has hit a new all-time high. According to DefiLlama, XLM’s TVL has reached a new all-time high (ATH) of $169.30 million on Tuesday.
The surge in TVL suggests a growing activity and interest in the Stellar ecosystem, with more users depositing and using assets on XLM-based protocols.
Data obtained from CryptoQuant also supports the positive outlook for XLM, with its spot and futures markets indicating large whale orders and buy dominance. These indicators point to a potential rally in the near term.
XLM eyes $0.28 in the near term
The XLM/USD 4-hour chart is bearish and efficient as Stellar Lumen has added over 2% to its value in the last 24 hours. The coin found support around the weekly support level at $0.221 on Friday, and has added over 10% to its value since then.
Currently, XLM is trading at $0.248, close to the 38.20% Fibonacci retracement level of $0.256, a key resistance zone.
If XLM surges past the $0.256 resistance level, it could rally higher towards the 50-day Exponential Moving Average (EMA) at $0.292 over the next few hours or days.
The 4-hour RSI of 54 is above the neutral 50, indicating a growing bullish trend. For the recovery rally to be sustained, the RSI must continue towards the overbought region. Furthermore, the MACD exhibited a bullish crossover over the weekend, signaling a buy opportunity and reinforcing the bullish thesis.
However, if XLM faces a correction, the bearish trend could extend toward the weekly support level at $0.221.
