Stellar (XLM) Price Up 6%: Buying Momentum and Bullish Signals

Stellar (XLM) price is up more than 6% in the last 24 hours and is trying to regain its $11 billion market cap. Technical indicators such as DMI and Chaikin Money Flow (CMF) are showing that buying momentum is increasing and a potential uptrend is forming. XLM is currently trading between the $0.31 support and $0.47 resistance levels. If it maintains its bullish momentum, the EMA lines are pointing to a possible golden cross formation.

Uptrend with DMI

The XLM DMI chart shows that the ADX has risen to 19.5, a significant increase from its previous level below 15. This indicates that trend strength is increasing and that buying pressure is starting to outpace selling pressure. Specifically, the +DI indicator has jumped from 10 to 25.6 in just one day, while the -DI has fallen to 13.9. This intersection signals that buying pressure is strengthening and the start of a potential uptrend.

ADX measures trend strength, with values ​​above 25 indicating a strong trend, while levels below 20 indicate weak momentum. Stellar’s ​​ADX is currently at 19.5, but if the upward trend continues, it suggests that the trend is gaining momentum and the uptrend could be sustained.

Positive Value of CMF and Increased Capital Inflow

Chaikin Money Flow (CMF) is currently at 0.02, indicating that capital inflows are increasing and a positive shift in market sentiment is imminent. Having remained in negative territory between December 25-31, CMF is now moving into positive territory, indicating that buying pressure is increasing slightly and investor confidence is recovering.

CMF measures the flow of money into an asset based on price and volume data over a given period. Values ​​above 0 reflect net buying pressure, while values ​​below 0 reflect selling pressure. The positive trend in Stellar CMF at 0.02 signals increased capital inflow and potential bullish momentum in the short term.

XLM Price Prediction: Is There a 32% Upside Potential?

The EMA lines for XLM are currently trending downward, with the short-term lines trading below the long-term lines. This reflects continued downward momentum. However, if the short-term EMAs rise and cross over the long-term EMAs, a known bullish indicator, a golden crossover could occur. In this case, the XLM price could attempt to rally to $0.406. Breaking this level could open the door for a larger move towards $0.47.

In case of a downward movement, the $0.31 level could be tested again. If this level is broken, further declines towards the next support level of $0.25 are possible.

As a result, the critical support and resistance levels for XLM will determine the short-term price action. The change in the EMA structure will provide important clues as to which direction the market will move and will determine whether the bullish momentum will continue.