Stellar (XLM) is showing technical signals, that could mark the beginning of a new bullish phase. The crypto analyst, CW, notes that, similar to the previous market cycle, price action has touched its long-term lower trendline twice and is now stabilizing. This structure often suggests weakening selling pressure and potential accumulation by buyers.
Source: CW X Post
A green Heikin-Ashi candle has now appeared, a signal many traders associate with trend reversals and strengthening momentum.
If sustained buying volume follows and resistance levels break, CW believes XLM could enter an extended rally. In an optimistic scenario mirroring past cycles, projections suggest the token could eventually surge toward the $7 level.
Also Read: Stellar (XLM) Price Holds Ascending Channel With $0.19 Breakout in Sight
Momentum Indicators Point to Improving Strength
According to TradingView, as of Friday, February 27, currently, the RSI is at a value of 42, which is rising from a relatively oversold position but is still below the 50 mark.
This shows a gradual buildup of bullish momentum but still indicates a weakening market. The rising line on the RSI moving average also shows a recovery attempt but still indicates a cautious position for buyers.
Source: TradingView
The MACD indicates that the blue line (MACD) is rising to meet the orange line (signal line). The histogram is also slightly positive. This indicates that the weakening bearish trend is shifting to a bullish trend.
However, the MACD line is still close to the zero line, indicating that the momentum may not be enough to support the upward move.
Malaysia Launches First Tokenized Funds on Stellar
Apart from this improving price movement, Kenanga Investment Bank has made a historic move in the industry by launching the first tokenized money market funds in Malaysia on Friday, February 26th, on the Stellar (XLM) blockchain network.
According to the crypto analyst Sammie, through its Myrra platform, Kenanga transforms traditional fund units into digital tokens to create secure, regulated, and tradable versions of its Kenanga Money Market Fund and Kenanga Islamic Money Market Fund.
Stellar’s network allows for quick, transparent, and low-cost settlements, connecting traditional finance and blockchain technology. Tokenized funds are fully compliant while providing support for digital trading, including instant settlement.
The Securities Commission in Malaysia is promoting innovation in tokenized capital markets, making the country a regional hub for blockchain technology. This is an important step in the fusion of Web3 tech with traditional investing.
Also Read: Stellar (XLM) Eyes $0.185 as Market Shows Early Signs of Recovery