Stellar ($XLM) could be gearing up for a price rebound, as the TD Sequential indicator flashes a buy signal on the hourly chart. This development has caught the attention of traders and analysts, sparking renewed interest in the cryptocurrency.
According to Crypto analyst Ali Martinez,The TD Sequential, a popular technical analysis tool known for predicting market reversals, has shown a bullish setup on Stellar’s hourly chart. The indicator, which identifies potential turning points in price trends, has printed a “1” candle following a “9” count—a pattern typically interpreted as a buy signal. This suggests that downward momentum may be waning, paving the way for a possible upward move.
Market Dynamics, Sentiment, and Stellar’s Turnaround
The chart reveals that Stellar has been experiencing a consolidation phase after a steep decline. Price action shows multiple small-bodied candles, indicating indecision among traders. However, the appearance of the TD Sequential’s buy signal suggests that selling pressure could be exhausted, potentially triggering a trend reversal.
Despite this bullish signal, Stellar is trading around the $0.339 level, struggling to break past minor resistance zones. If buying momentum builds, the next target would be around $0.343, followed by a more significant resistance at $0.347. Conversely, failure to hold current support could lead to a retest of the $0.336 level.
The emergence of the TD Sequential buy signal has sparked optimism among investors, with some anticipating a short-term rally. This sentiment is bolstered by the fact that Stellar’s price movement aligns with broader market dynamics, where major cryptocurrencies are also exhibiting signs of recovery.
However, traders are advised to proceed with caution. While the TD Sequential is a reliable tool for spotting reversals, market volatility and external factors, such as macroeconomic events, could influence Stellar’s price trajectory.
Stellar’s current chart setup, highlighted by the TD Sequential’s buy signal, suggests that a rebound could be on the horizon. As traders monitor key resistance and support levels, the next few trading sessions will be crucial in confirming whether this bullish signal translates into a sustainable upward trend. For now, cautious optimism prevails as Stellar ($XLM) navigates its way through a potential market reversal.
