Stellar (XLM) Poised for Rebound as TD Sequential Buy Signal Emerges

Stellar (XLM) may be on the cusp of a rebound, as indicated by a recent analysis from cryptocurrency analyst Ali Martinez (@ali_charts). In a post on X, Martinez shared a chart showcasing a potential buy signal on XLM's hourly chart, based on the TD Sequential indicator.

The TD Sequential indicator is a tool used by traders to identify potential trend reversals. On the hourly chart of XLM/USDT, the buy signal appears as a green "1" candle following a red "9" count, suggesting that selling pressure has been exhausted and a price reversal could be imminent. Martinez's chart reflects this setup, with a black arrow marking the point where the buy signal was triggered. The chart also shows a period of downward price movement leading up to the signal, followed by several small-bodied candles indicating consolidation. If the TD Sequential setup plays out as expected, XLM could see a short-term upward move.

At the time the chart was published, XLM traded at approximately $0.33944 on Binance. The price had previously declined, forming a series of lower highs and lower lows, but the emergence of the buy signal could indicate a shift in momentum. Technical traders often seek confirmation before acting on a TD Sequential buy signal. A bullish candle following the signal, increased trading volume, or a break above key resistance levels would strengthen the case for a rebound.

While the TD Sequential indicator provides a buy signal, traders should remain cautious and seek further confirmation. Market sentiment, broader cryptocurrency trends, and external factors such as macroeconomic conditions can all influence XLM's price movement. If buying pressure increases and the price starts forming higher highs, XLM could confirm the reversal and move toward resistance levels around $0.345 or higher. However, if the price fails to gain upward momentum, the buy signal may not play out as expected, and further downside could be possible.