XLM Skyrockets 15% In Week, Challenging Bearish Short Traders’ Resolve

This surge positions Stellar as the asset with the highest gains in the last seven days, according to data from TradingView.

At the time of reporting, Stellar was trading at $0.1300, reflecting the renewed interest and demand that has been the driving force behind its recent price uptick. Notably, this resurgence was marked by a decisive shift in market dynamics, with bulls regaining control on September 4th.

On that day, XLM’s spot market saw an impressive 8% intraday price jump, signaling a significant shift in momentum. This bullish trend has since been confirmed by technical indicators, notably the Moving Average Convergence/Divergence (MACD) indicator, which currently places the bulls in control. The MACD indicator has consistently shown green histogram bars since September 4th.

Key momentum indicators further reinforce the notion of increased XLM accumulation among daily traders. The Money Flow Index (MFI) stands at 64.24, indicating that XLM accumulation has outpaced sell-offs. Additionally, the %K line (blue) of the Stochastic RSI indicator is pegged at 100%, signifying that XLM accumulation surpasses distribution. This indicator measures market momentum and identifies overbought and oversold conditions.

However, it’s important to note that XLM’s Stochastic RSI being at 100% suggests that the token is currently overbought. Historically, this level has posed challenges for buyers in sustaining further price rallies, often leading to a retraction.

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