Stellar (XLM) price is facing conflicting technical signals as the downward trend continues deeper, with the coin down 29% from its annual high in the past 30 days. A recent 'death cross' formation on December 20 indicates increasing bearish pressure, although the rise in buying activity could be a sign of a potential trend reversal.
The DMI indicator shows a strong bearish momentum with ADX exceeding 25; however, the sudden spike of CMF to 0.19 indicates significant accumulation from institutions. This technical divergence creates a critical period for XLM, with the nearest support at $0.31 and potential resistance at $0.40 if bullish momentum is reinforced.
The DMI index of XLM shows a strong downward trend
The Directional Movement Indicator (DMI) of Stellar shows increasing trend strength, with the ADX index rising from below 20 to 26.8 in just 4 days.
ADX measures the strength of a trend regardless of direction, with values below 20 indicating a weak trend, 20-25 indicating a developing trend, and values above 25 signaling a strong trend. When ADX exceeds 25, it indicates that the current trend is gaining momentum and is likely to continue.
XLM DMI indicator | Source: TradingView
The current D+ values are 13.2 and D- are 21.5, combined with the ADX rising to 26.8, painting a bearish picture for XLM price. Since D- (negative directional index) is higher than D+ (positive directional index), this confirms the bearish nature of the trend.
The growth of ADX above 25 suggests that this downward movement is being reinforced and may continue, with the large gap between D- and D+ further increasing the likelihood of further bearishness.
Stellar's CMF has surged significantly in the past 24 hours
The Chaikin Money Flow (CMF) indicator of XLM has seen a strong increase, rising from 0.03 to 0.19 in just 24 hours.
CMF combines price and volume to measure buying and selling pressure. Positive values indicate accumulation, while negative values signal distribution. The level of the indicator (the closer to +1 or -1) indicates the strength of the money flow.
XLM CMF indicator | Source: TradingView
The surge of CMF to 0.19, the highest since November 24, signals strong buying pressure and accumulation from institutions.
The significant increase from the neutral zone (0.03) to a clear positive level indicates a notable change in market sentiment, with capital flowing into Stellar at a rapid pace. When CMF experiences such a strong positive change, it is often a precursor to bullishness, as it reflects strong determination from large investors in the market.
XLM Price Prediction: Does the downward trend continue?
XLM price recently received a strong bearish signal with the formation of a 'death cross' on December 20, when the short-term moving average crossed below the long-term moving average.
This technical pattern shows increasing selling pressure, with the nearest support level at $0.31 being crucial to maintain price stability. If this support level is not held, the price of XLM may drop further to $0.25, creating a significant downside risk.
However, recent data from Chaikin Money Flow indicates potential trend reversal and bullish momentum. If Stellar's price can capitalize on this positive money flow and establish a bullish trend, it may face nearest resistance at $0.40.
XLM/USDT 4-hour chart | Source: TradingView
If this level is surpassed, XLM could target higher levels such as $0.47, providing a potential upside of 34% compared to the current price, although this scenario requires ongoing buying pressure to overcome the current bearish technical structure.
https://tapchibitcoin.io/gia-stellar-xlm-hinh-thanh-tin-hieu-giam-gia.html