Stellar’s XLM token has confirmed a golden cross on its price chart, a technical pattern where a short-term moving average crosses above a longer-term average, but the bullish signal has not yet translated into significant price momentum, according to market analysts.
The golden cross, formed when the 50-day moving average crossed above the 200-day moving average, is widely viewed by traders as a potential indicator of an upcoming uptrend. However, analysts caution that the signal’s reliability depends on whether trading volume confirms the move.
In Stellar’s case, trading volumes have not expanded alongside the moving average crossover, suggesting that the golden cross may not be driven by genuine buying interest. Volume analysis has shown that XLM’s price action following the crossover has been relatively flat, with the token trading near $0.18 at the time of writing.
The divergence between the moving average pattern and volume data has led some analysts to question whether the golden cross will sustain. Without volume support, golden crosses can sometimes produce false signals or lead to brief rallies that quickly reverse.
XLM has been one of the weaker performers among major cryptocurrencies during the current market recovery phase. The token remains well below its all-time high of $0.88, reached in May 2021. However, recent developments in the Stellar ecosystem, including MoneyGram joining as a validator and increased institutional tokenization activity, could provide fundamental support for the price over the longer term.
Kalshi prediction market traders have been betting on XLM to outperform XRP this year, adding an element of competitive interest between the two payments-focused blockchain networks.
This article was adapted from U.Today. Read the original here.
