Stellar’s Soaring 100% Rally: A Cautionary Tale 🚀💰

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Well, you wouldn’t believe it, but the Stellar (XLM) price has done a bit of a Houdini act, jumping over 16% in the past 24 hours. It’s like the little engine that could, breaking free from its bullish continuation pattern. Now, most folks might think it’s about to take a breather, but some fancy charts and numbers are whispering something different. A much bigger rally, they say, is on the horizon. But, and there’s always a but, one little detail is waving a red flag. 🚩

But let’s not get ahead of ourselves. We’re talking about the crypto world, where every day feels like a rollercoaster ride. 🎢

Triple EMA Crossover Shows Strong Uptrend Setup

Now, if you’re into the nitty-gritty of charts, the 4-hour chart is a real treat. It’s like a treasure map, and the triple EMA crossover is the X that marks the spot. The 20-period exponential moving average (EMA) has already crossed above both the 50 and 100 EMAs, and the 50 EMA is getting cozy with the 100 EMA, hinting at a warm embrace. 🤗

An EMA, for those who haven’t been initiated into the secret society of traders, is a technical tool that smooths out price data, giving more weight to recent prices. It’s quicker on the draw than a simple moving average (SMA). A “Golden Cross,” where a shorter EMA crosses above a longer one, is the Holy Grail for confirming bullish trend reversals. 🏆

And just to add a bit of history, the last time this triple crossover setup happened (early July), Stellar price shot up from $0.23 to over $0.52-a 122% rally, more or less. This setup is building strong technical momentum as the price nudges above $0.46, with $0.50 as the immediate psychological resistance and the $0.52-$0.97 range as the bullish extension zone. 🚀

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Netflows Show Early Profit-Taking Risk

But wait, there’s a catch. The one-week spot exchange netflow chart has seen a jump from a measly $724,000 to a whopping $9.12 million this week-an increase of over 1,159%. This metric tracks how much XLM is flowing onto or off exchanges. When flows rise, it usually means traders are moving tokens to exchanges, possibly to cash out. 💸

This isn’t the first rodeo. On June 23, 2024, netflows went positive, and the Stellar price dipped from $0.26 to $0.24 shortly after. Another instance was on December 30, 2024, when a similar surge in exchange inflows led to a short-term price correction. 📉

So, while the technical setup looks bullish, traders should keep their eyes peeled for potential pullbacks triggered by profit-booking pressure in the coming sessions. Don’t say we didn’t warn you. 🧐

Bull-Bear Power Index Validates the Stellar Price Breakout

The pole-and-flag breakout on the daily chart adds another layer to the bullish story. It’s like a two-step dance: a strong price run (the pole), followed by a slanted consolidation (the flag), and then a breakout that leads to another leg up. 🕺💃

What strengthens this case is the Bull-Bear Power (BBP) index, which has turned green again. This indicator shows the difference between the highest price buyers were willing to pay and the lowest price sellers accepted. A green BBP during a breakout usually confirms that buying strength is back. 💪

With the pole measured from the $0.23 bottom to the $0.52 top, the same extension from the breakout candle’s close suggests the next Stellar price target near $0.97, assuming the rally keeps its momentum. But remember, to form a clean upside move, Stellar price must first cross $0.52, the previous swing high, or the highest point of the pole. 🌈

However, if the Stellar price dips below $0.36, driven by increased selling pressure, the short-term bullish scenario might need a reality check. 🤔

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2025-08-08 12:43