Stellar (XLM) Recovers from Decline, Approaching Critical Resistance Level
Stellar (XLM) is showing signs of recovery after a two-week downtrend. Increasing investor interest is reflected in the rising Chaikin Money Flow (CMF) indicator. XLM is currently trying to break the resistance level at $0.424. If this resistance is broken, the price could move towards $0.445 and then $0.470.
However, if the $0.424 support cannot be maintained, the decline may continue. In such a case, it is likely that XLM will find support at $0.393 and $0.359.
Increasing Investor Interest and Technical Indicators
The CMF indicator measuring capital inflow into Stellar indicates a positive upward trend for XLM. However, the CMF is still below the zero line, indicating that the momentum is not yet strong enough to initiate a sustained upward movement. A decisive move above zero in the CMF could create a lasting positive impact on the price and signal a stronger recovery in the coming weeks.
Similarly, the RSI (Relative Strength Index) is also showing a positive reversal by moving above the neutral zone after a short-term decline. This situation indicates that investor sentiment has improved and the price is gaining strength.
Critical Levels in Price Movement
XLM is currently trading around $0.411 and is just below the $0.424 resistance. Breaking this resistance could accelerate Stellar's recovery after the decline. Additionally, the Parabolic SAR indicator signaling the end of the two-week downtrend is considered a positive signal.
If the $0.424 level becomes support, it will be possible for XLM to rise to $0.445 and then $0.470. This scenario could significantly compensate for recent losses and continue the upward trend.
On the other hand, if a negative sentiment prevails in the overall market and the $0.424 support is broken, declines in Stellar's price may accelerate. In such a scenario, XLM could drop to $0.393 and then $0.359, weakening bullish expectations.