Stellar (XLM) Price Surges 34% in 7 Days, But Uptrend May Be Losing Steam
Stellar (XLM) has experienced a significant price surge of 34% over the past seven days, driven by a golden cross formation. The cryptocurrency is currently trading between critical levels, with resistance at $0.47 and support at $0.41. As investors await the next move, signals from the Chaikin Money Flow (CMF) and Directional Movement Index (DMI) suggest that the uptrend may be weakening.
XLM Remains in an Uptrend, but Sellers May Take Over
The Average Directional Index (ADX) for XLM currently stands at 40.1, indicating a strong trend. Although the ADX has declined from 52.6 two days ago, it remains firmly above the 25 threshold, confirming that Stellar is still in an uptrend. However, the momentum appears to be easing.
The +DI, representing buying pressure, has dropped to 25 from 40.3 two days ago, while the -DI, which tracks selling pressure, has risen to 14.6 from 7.9. This shift suggests that while buyers still maintain control, their dominance is waning as sellers gradually gain ground. If the trend continues, XLM’s uptrend could weaken further, potentially leading to consolidation or a reversal unless buying momentum strengthens.
Stellar CMF Indicates Shift in Market Sentiment
The Chaikin Money Flow (CMF) for XLM is currently at -0.14, marking a significant shift from its peak of 0.41 on January 1, its highest value in one year. The CMF measures the flow of money into and out of an asset based on price and volume, with values above 0 indicating net buying pressure and values below 0 suggesting net selling pressure.
This decline suggests that selling pressure has overtaken buying activity, which could weigh on XLM’s price in the short term. With the CMF falling from 0.17 just two days ago to its current level, the trend points to a loss of confidence among investors.
XLM Price Prediction: Can Stellar Reclaim $0.60?
XLM’s EMA lines highlight the golden cross that formed on January 1, which drove recent price gains. Currently, XLM is trading between a resistance at $0.47 and a support at $0.41, with the resistance acting as a barrier in past attempts.
If the $0.47 resistance is broken, Stellar price could rise to $0.51 and potentially test $0.60 if bullish momentum strengthens. However, signals from the CMF and DMI suggest that the uptrend may be weakening. If the support at $0.41 fails, XLM price could face a significant pullback, potentially dropping to $0.35 or even $0.31.
Conclusion
In conclusion, while Stellar (XLM) has experienced a significant price surge, signals from the CMF and DMI suggest that the uptrend may be weakening. The cryptocurrency remains in an uptrend, but sellers may take over if the trend continues. Investors should be cautious and monitor the market closely, as a break above $0.47 could lead to further gains, while a failure to hold support at $0.41 may result in a sharp correction.
Disclaimer: This price analysis article is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: Beincrypto.com
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