Stellar (XLM) price has surged over 20% in the past 24 hours and is up an impressive 124.86% in the past seven days to reach $0.30, its highest price since December 2021. This rapid rise reflects strong bullish momentum, supported by key indicators such as the RSI, which remains in the overbought zone.
However, the relatively weak CMF suggests that the current trend may not have enough strength to sustain further gains without fresh capital inflows. Whether XLM can push towards a $10 billion market cap or face a potential correction will depend on how well it holds key support levels in the coming days.
XLM RSI is in the overbought zone
Stellar’s RSI is at 74.10, rising sharply from below 60 just a day ago. This increase signals strong bullish momentum, pushing XLM into the overbought zone, where values above 70 indicate heightened buying activity.
While an RSI above 70 often suggests that a correction may be on the horizon, it also reflects strong market enthusiasm driving the current uptrend.
XLM RSI. Source: TradingView
The RSI measures the strength of price movements, with values above 70 indicating overbought and below 30 indicating oversold. Stellar has had RSI above 70 for days, with prices rising before correcting.
This suggests that while caution is warranted, the current overbought conditions do not necessarily mean an immediate reversal as the rally may still have room to grow before cooling off.
Stellar's CMF is positive, but not yet that strong
XLM currently has a CMF of 0.06, recovering from -0.10 just a day ago. This move into positive territory indicates an inflow of capital back into the asset, suggesting renewed buying pressure following the recent selling activity.
However, the low CMF indicates that the entry is still not as strong as in periods of higher momentum.
XLM CMF. Fonte: TradingView
Chaikin Money Flow (CMF) measures the volume and direction of money flow, indicating inflows (positive values) or outflows (negative).
Although XLM's CMF is positive, signaling a favorable short-term trend, it is still well below the peak of 0.40 recorded in November, when it remained above 0.10 for almost a week.
XLM Price Prediction: Can Stellar Reach $10 Billion Market Cap?
If Stellar maintains its current uptrend, it could surge even higher to test a $10 billion market cap. Reaching this milestone would require a 15.7% increase in XLM’s price, signaling continued strong bullish momentum and renewed investor interest.
However, as indicated by the relatively weak CMF, the current trend may not have the strength to sustain this upward trajectory.
XLM Price Analysis. Source: TradingView
If the trend reverses, XLM price may first test its nearest support at $0.14. If this level fails, Stellar price could fall further to $0.0994, representing a 67% correction from recent highs.
The article Stellar (XLM) rises 20% and reaches its highest level since 2021 appeared first on BeInCrypto Brasil.
