Stellar Forms TD Signal That Preceded 95% Rally

Stellar (XLM) has formed a technical signal that previously preceded a significant price surge. According to cryptocurrency analyst Ali Martinez, Stellar completed the setup phase of the Tom Demark Sequential indicator on its weekly chart with nine red candles. This pattern emerged before a 95% rally in March at similar price levels.

The same setup occurred this time around, indicating that the downtrend may be exhausting itself. However, as Martinez pointed out, the signal doesn't guarantee an immediate rally and may require a consolidation period first.

The Tom Demark Sequential indicator is a technical tool used to identify potential price reversals by counting candles of the same polarity through two distinct phases.