Stellar (XLM) price stands below resistance after 459% rally

The price of Stellar (XLM) has risen by 459% in the last 30 days, attracting market attention. Despite this rally, the RSI has cooled to 50.5, indicating neutral momentum after overbought conditions in late November.

Meanwhile, XLM faces key resistances at $0.53 and $0.56. Its EMA lines still show bullish patterns but hint at weakening short-term momentum. The Ichimoku Cloud suggests that there may be a change in mindset.

XLM RSI is in neutral zone.

The Stellar RSI is currently sitting at 50.5, down from 64 a day earlier. Between November 21 and November 24, the RSI remained above 70, coinciding with XLM's price reaching its highest level since May 2021.

This overbought conditions highlighted strong bullishness before the recent cold snap.

The RSI, or Relative Strength Index, measures the speed and volatility of price movements, giving insight into whether an asset is overbought or oversold. RSI values ​​above 70 indicate overbought conditions and potential pullback, while values ​​below 30 indicate oversold conditions and price recovery.

The XLM RSI is now at 50.5, reflecting a more neutral position, indicating a balance between buying and selling. This means that the price is consolidating, awaiting further market signals to determine the next move.

The Ichimoku Cloud of the stars indicates that the current mood may be changing

This Ichimoku cloud chart shows stellar price action currently sitting near the cloud, indicating a possible support test.

The leading edge (green and red shaded area) reflects a neutral to slight breakout trend. The cloud is relatively flat but still offers support at the $0.50 level. Tenkan-sen (blue line) is below Kijun-sen (red line), which quickly indicates short-term weakness.

If XLM stays above the cloud, the overall trend is likely to remain strong, with potential for a rebound to Tenkan-Sen and Kijun-Sen levels.

However, a break below the cloud could signal a bearish transition, with price retesting lower support zones. The flat nature of the cloud suggests volatility in the market, so traders may look for a breakout or breakout as the next clear signal.

XLM Price Prediction: Could it hit $0.7 in December?

XLM currently faces two nearby resistances at $0.53 and $0.56, while the AMA lines remain bearish, with the short-term averages above the long-term.

However, Stellar's price recently dropped below the short-term EMA, indicating that it may lose short-term momentum. This indicates that continuous growth is weakening, and if there is no quick recovery, more downsides may follow.

If the uptrend gains strength and XLM price breaks through these resistances, it may retest $0.638, with the potential to climb to $0.65 or even $0.7, seeing price levels in 2021.

On the other hand, the Ichimoku Cloud and EMA patterns show signs of a trend reversal. If this bearish reversal materializes, XLM price may test support at $0.41, indicating a significant correction from current levels.