Crucial Data Arrives for Stellar (XLM): Will the Downtrend Continue?
Stellar ($XLM ) is in a deepening downtrend, down 29 percent from its 2021 peak. Despite the increasing selling pressure since December 20, some on-chain data is giving a contrary signal.
The Directional Movement Index (DMI) is used to measure the strength of a trend. When looking at XLM, this indicator is currently positive. The Chaikin Money Flow Index (CMF) reflects institutional buying at parity. According to the CMF, a rise to 0.19 shows that institutional buying has increased for#XLM.
Stellar’s Directional Movement Index (DMI) is drawing attention with its increasing trend strength. The Average Directional Index (ADX) has risen from below 20 to 26.8 in just four days. The ADX 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 crucial for XLM. If this support is broken, the price could drop to $0.25. On the other hand, Chaikin Money Flow (CMF) data indicates a potential trend reversal and bullish 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 held, the price could rally to $0.47, an increase of 34 percent from the current level.
