As market momentum gradually shifts back toward mid-cap altcoins, Stellar seems to be putting on a show

Despite being overshadowed by more prominent players like Bitcoin, Ethereum and XRP, XLM's technical setup now indicates increasing potential for a breakout toward the technically and psychologically significant $0.30 level.

As the market's momentum gradually shifts back toward mid-cap altcoins, Stellar seems to be putting on a show. Despite being overshadowed by more prominent players like Bitcoin, Ethereum and XRP, XLM's technical setup now indicates increasing potential for a breakout toward the technically and psychologically significant $0.30 level.

The 50 EMA, 100 EMA and 200 EMA are the three main exponential moving averages that Stellar has successfully regained, according to the daily chart. This alignment points to a return of midterm control by bulls. The fact that XLM has been able to stay above the 200 EMA, which served as a fundamental support level during the most recent market decline, is more convincing.

Though it has been steadily increasing, the volume is still quite low, which suggests that accumulation is probably happening in the background. In the past, the $0.30 level has functioned as a local resistance. If this volume increases, XLM may challenge it and use it as a launchpad for more aggressive price action. The structural situations of XLM and XRP are comparable.

Ranging above its decreasing trendline and aiming for $2.60, XRP is now approaching substantial long-term resistance around $3 after breaking through it. This month, XLM is following the same pattern as XRP despite being structurally less explosive because of its smaller market cap and lower liquidity. If the correlation is correct, Stellar might only be a strong candle or two away from making its own aggressive move.

There is a catch though: XLM's expansion is contingent upon the market's overall level of risk tolerance. A decline in majors like ETH or BTC could disrupt this arrangement. XLM has a real chance of reaching $0.30, a level that might alter sentiment and open the door for further highs not seen since early 2022 if market stability persists.