Stellar (XLM) price has registered a significant rebound in the cryptocurrency market after one week of constant fluctuations with higher lows.
The coin signals a breakout following its recovery at $0.24, which proves to be strong support.
XLM Price Recovery Signals Renewed Bullish Momentum
According to market data, in the last 24 hours, XLM has climbed by 1.73% to trade at $0.2456. The coin hit a high of $0.2473 in earlier trading before seeing a correction.
The correction is probably due to the lack of buying momentum from more XLM investors, who have yet to warm up to the price rebound.
Notably, trading volume has remained red at 21.30% or $78.7 million. The reluctance from XLM investors could stem from the fact that despite the rebound, prices remain lower than they were about seven days ago.
However, the action of XLM bulls was sufficient to support its rebound journey in the last 24 hours of trading, a shift from the previous trend.
Before the current recovery, XLM price had slipped from the $0.25 level. Selling pressure pushed the value of XLM on a steady downward path that saw the price plunge to a low of $0.2312.
If XLM sustains this rebound and reclaims the $0.25 price mark, more investors will likely rekindle their interest and support the price action.
Can Stellar Lumens Repeat April’s Return of 19.4% Growth?
With XLM bulls pushing the coin, market observers are keenly watching whether the coin can still post its average growth in April.
As per Cryptorank data, Stellar’s monthly returns stand at an average of 19.4% in April.
Over the past ten years, XLM’s April average growth of nearly 20% has been met only four times. In six other years, the coin has fallen short of the target.
A striking fact is that XLM has consistently hit double-digit growth in years when it flipped the average. The least positive growth figure was 29.8% in April 2021.
It remains to be seen if XLM bulls can support the asset in the remaining 11 days of April to enable it to post the historic monthly average.
The chart shows that XLM technical indicators show market participants can expect a short-term rebound between $0.24 and $0.258.
If market sentiments support the momentum, a breakout towards $0.35 is likely in a bullish scenario.
However, XLM risks witnessing a price drop if trading volume fails to rise with the spot valuation. Usually, when an asset’s price breakout is supported by volume, the rebound is more reliable.
This will prove crucial if Stellar flips previous resistance zones of $0.38 to $0.42. If XLM can push through these levels, the rally triggered by its bulls could become more explosive and sustainable.
Adoption and Institutional Interest Remain Crucial
For Stellar to maintain steady long-term growth, its adoption in cross-border payments and DeFi has to scale and rival that of XRP.
The coin has to increase its utility beyond serving as a transaction fee on the Stellar network.
Additionally, Stellar’s ability to attract institutional interest, like XRP’s, could boost its value in the crypto space.
If different asset management firms see potential in its utility, they might consider filing for an exchange-traded fund (ETF) for XLM.
