Critical data for Stellar (XLM) has arrived: Will the bear trend continue?

Stellar ($XLM ) is facing a deepening downtrend, having declined 29 percent from its peak in 2021. Although the increasing selling pressure since December 20 is troubling, some onchain data is giving a reversal signal.

The Directional Movement Index (DMI) indicator is used to measure the strength of a particular trend. When looking at XLM, this indicator is currently positive. The Chaikin Money Flow (CMF) indicator reflects institutional purchases in the parity. According to CMF, the rise to 0.19 shows that institutional purchases have increased for #XLM .

Stellar's Directional Movement Index (DMI) draws attention with its increasing trend strength. The Average Directional Index (ADX) rose from below 20 to 26.8 in just four days. The ADX indicator measures the strength of a trend. Below 20, ADX indicates a weak trend, between 20-25, a developing trend, and above 25, a strong trend.

The $0.31 support level is critical for XLM. If this support is broken, the price could fall to $0.25. On the other hand, Chaikin Money Flow (CMF) data signals a possible trend reversal and upward momentum. If Stellar can use this positive money flow and start an uptrend, the price could first test the $0.40 resistance. If the $0.40 level is maintained, the price could walk to $0.47, a 34 percent increase from the current level.