Stellar (XLM) Stages Early Comeback as TD Sequential Flashes a Major Buy Signal

Stellar's XLM is showing the first green shoots of a recovery, with a classic technical indicator screaming 'buy.'

The TD Sequential setup—a favorite among chart analysts for spotting trend exhaustion—has just printed a bullish countdown completion on XLM's daily chart. It's the kind of signal that makes technical traders sit up and adjust their positions.

What the Flashing Signal Really Means

In plain English, the TD Sequential works by identifying precise points where a selling frenzy has burned itself out. When it completes its count on a downtrend, it suggests the momentum has shifted. For XLM, that shift appears to be happening now, hinting that the recent slump may have run its course and a new leg up could be starting.

Beyond the Chart: The Real-World Engine

While the chart pattern sets the stage, Stellar's fundamentals are what could fuel a sustained move. The network isn't just sitting still—it's built for moving value fast and cheap, a proposition that remains compelling as traditional finance continues to grapple with its own, slower, more expensive legacy systems. Every time a bank settles a cross-border payment with a three-day delay and a hefty fee, it's a free advertisement for networks like Stellar.

So, is this the start of a major reversal or just a dead-cat bounce? The TD setup provides the tactical entry clue, but the network's utility will write the long-term story. Watch the key resistance levels; a decisive break above them could see XLM attracting a fresh wave of capital—the kind that's always looking for the next asset to ride, right after it's finished dumping the last one.

XLM TD Signal Hints at a Short-term Rebound

The crypto analyst, Ali, emphasized that stellar (XLM) is now once again in the limelight due to the TD Sequential indicator’s new buy signal, a popular method used for detecting exhaustion points in a trend. The buy signal was triggered after a prolonged decline, indicating a weakening in the bearish flow, thus a potential reversal. This indicator has always been associated with a short-term rally.

Source: X

With regard to the wider technical outlook, the appearance of this buy signal implies that XLM has emerged from its current trend of decline. Although confirmation is currently necessary with regard to this potential trend reversal, any subsequent confirmation of the uptick might allow it to break out towards the higher levels of resistance.

XLM Signals Early Recovery Amid Stabilizing Momentum

Stellar (XLM) fell from mid-November to late December, forming lower highs and lows. After bottoming NEAR $0.198, it showed a modest recovery, closing at $0.21503 (+3.19%), with a bullish reversal candle. Market sentiment remains cautious, with consolidation between $0.21 and $0.22 following earlier declines.

Source: TradingView

The momentum indicators seem to be showing signs of the start of a relief or a recovery phase. The MACD Histogram is also now aligned in the positive region, indicating a slowdown in bearish sentiments, although the MACD lines are still in the negative region. The RSI is now at 44 and seems to be showing signs of moving out of the oversold region to the neutral region.

Also Read: Stellar XLM Gains Momentum: Can Price Surge to $0.35 Next?