On August 8, 2025, analyst Crypto Dream (@_Crypto_Dream) posted a technical analysis of Stellar’s XLM/USDT chart, stating that the recent correction is complete and a new bullish impulse has begun. According to the analyst, XLM has already broken out of a descending wedge pattern and is now testing a key resistance zone around $0.50. He highlighted that if XLM breaks above this resistance, the price could rally toward the $0.90–$1.00 range.
The chart shows a confirmed falling wedge pattern, which typically signals a bullish reversal. The breakout from the wedge occurred in late July, followed by a strong upward move that tested the $0.50 resistance. After a minor pullback into the $0.38 support area, XLM rebounded, keeping the bullish structure intact. Volume spikes during the breakout and retest phases support the pattern’s strength.
Technical readings indicate a 100% upside potential from current levels. The target zone is marked between $0.90 and $0.93, aligning with the previous highs from late 2024. As of writing, XLM trades at around $0.46, and another bullish leg could emerge if price closes above the $0.50 range on strong volume.
XLM formed a clean wedge with consistent lower highs and lower lows, then reversed the structure with a breakout candle and follow-through. The consolidation above $0.38 strengthens the bullish case. If bulls reclaim $0.50, the next leg could unfold quickly.
XLM Price Surges 14% in a Day, Bounces Off 50 EMA
On August 8, 2025, Stellar’s XLM/USD jumped by over 14 percent, rising from a low of $0.40 to a high of $0.4665 within a few hours. The chart from TradingView shows a strong green candle on the 4-hour timeframe, with XLM clearly moving above the 50-period exponential moving average, or EMA, currently sitting at $0.4122. This surge followed a consolidation period where the price hovered below the EMA for several days.
The sharp rebound also came with a volume spike, reaching 9.63 million in the last 4-hour candle, the highest in recent sessions. This suggests that fresh buying interest entered the market after the price reclaimed support near $0.40. After bouncing off that level, XLM continued to push higher, breaking through previous short-term resistance near $0.44.
The bullish momentum confirms that buyers are back in control. The reclaim of the 50 EMA adds technical strength, as this indicator often acts as dynamic support or resistance in trending markets. If price continues to hold above this line, it may signal a stronger uptrend forming over the next few days.
XLM RSI Hits 76, Signals Overbought Territory After Sharp Rally
On August 8, 2025, the 14-period Relative Strength Index (RSI) for Stellar’s XLM surged to 76.66 on the 4-hour chart, indicating overbought conditions. The indicator, shown in purple, crossed above the key level of 70 during a sharp price rally earlier in the day. This upward momentum followed a prolonged period of consolidation where the RSI mostly remained between 40 and 60.
The RSI line also moved well above its 14-period moving average, which currently stands at 58.51. This separation between the RSI and its average suggests strong bullish pressure. As buyers stepped in, the RSI climbed rapidly, mirroring the price spike that pushed XLM from $0.40 to $0.46. The steep angle of the RSI curve reflects the speed and strength of the move.
Although an RSI above 70 typically signals overbought conditions, it can also suggest strong bullish momentum when backed by volume and price structure. With RSI now in the upper range, traders may watch closely for either continuation or a potential short-term pullback.
MACD Confirms Bullish Crossover as XLM Momentum Accelerates
On August 8, 2025, Stellar’s XLM printed a clear bullish crossover on the 4-hour Moving Average Convergence Divergence (MACD) indicator. The MACD line (blue) rose above the signal line (orange) during a sharp rally in price action. The MACD value reached 0.014072 while the signal line trailed at 0.006592. At the same time, the histogram printed strong green bars, confirming growing bullish momentum.
The crossover followed a brief consolidation period where the MACD stayed flat below zero. As soon as XLM price surged past $0.44, the momentum indicator responded sharply. The histogram bars widened quickly, suggesting acceleration in buying pressure. MACD crossovers above the zero line often signal trend continuation, especially when supported by volume and strong price structure.
With this move, the MACD confirmed the short-term trend shift seen across other indicators. The alignment of the MACD and histogram with the price breakout adds to the technical case for further gains.
Balance of Power Turns Positive as Bulls Regain Control of XLM
On August 8, 2025, Stellar’s Balance of Power (BoP) indicator printed a value of 0.39, signaling a tilt toward bullish control. This oscillator measures the strength of buying versus selling pressure, and a reading above zero typically reflects growing buyer dominance. The recent rise in BoP followed a breakout in price and volume, which pushed XLM above the $0.46 mark.
The BoP line fluctuated within a tight range for most of July, remaining close to the neutral line. However, as price action strengthened and broke above resistance, the BoP turned upward, showing a clear shift in market pressure. With the latest value approaching 0.40, the indicator confirms that buyers are currently leading short-term momentum.
This change aligns with other bullish signals across technical indicators. While BoP alone does not predict price, its positive reading supports the ongoing breakout and adds to the narrative of increased buyer aggression.