#xlm Price Prediction: May Drop to $0.28
If the open interest and market dominance of #xlm continue to decline, the recent upward trend may be hard to maintain. According to the daily chart, the Money Flow Index (MFI) shows a downward trend. MFI is used to measure buying and selling pressure in the market and to determine whether an asset is overbought or oversold.
When the MFI reading exceeds 80, it indicates that the market is overbought; while below 20 indicates oversold. From the chart, the MFI had reached the overbought territory before the correction. Considering the current market situation, the price of #xlm may drop to $0.28.
However, if the price breaks below the support level of $0.22, it may further decline to $0.17. Nevertheless, if buying pressure in the derivatives and spot markets increases, this downward trend may be curtailed, and #xlm could potentially rebound to $0.64.