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Stellar bulls eye rebound as TD Sequential flashes weekly buy signal
Summary
Stellar (XLM) has generated a technical buy signal on its weekly chart, according to analyst Ali Martinez, who noted the indicator previously appeared before a significant price rally.
The TD Sequential “9” buy signal has emerged as Stellar trades within a demand zone where previous price reversals occurred, Martinez stated in a chart analysis shared publicly. The cryptocurrency nearly doubled in price following the last appearance of this signal in the same support area, according to the analyst’s data.
Stellar XLM loses well beyond summer peak
Stellar has retraced significantly from its summer peak, with weekly candle patterns showing a consolidation structure similar to formations that preceded earlier upward price movements, the chart analysis indicated.
Intraday trading data showed sharp price swings, including a rapid spike followed by a pullback. Trading volume concentrated during the initial volatility period, with the highest activity occurring during the upward move, according to market data.
Following the subsequent selloff, the token stabilized near a price level that corresponds with the demand zone identified in the weekly analysis, the data showed.
The TD Sequential is a technical indicator used by traders to identify potential trend exhaustion and reversal points. The appearance of a “9” signal typically suggests a possible shift in momentum, according to technical analysis methodology.
Market participants are monitoring whether buying momentum can develop at the current technical level, where historical data shows previous buyer activity. Broader market conditions and investor sentiment are expected to influence the outcome, analysts noted.
The current price structure presents a setup similar to patterns that preceded previous rallies, though technical signals do not guarantee future price movements, according to market analysts.