Price $XLM Horizontal Approaching Testnet Protocol Reset 23 Stellar
When the price of an asset rises while trading volume decreases, it indicates a lack of strong market participation. Such movements tend to be less sustainable, as they rely on thin liquidity and can quickly reverse if selling pressure returns. This makes XLM at risk of losing its recent gains.
Additionally, the decline in capital inflow to the XLM spot market confirms decreasing demand for the altcoin. According to Coinglass, this altcoin recorded a net outflow of US$1.41 million today, highlighting the lack of support behind the 4% rise in XLM.
This indicates weakening demand for the token and increasing selling pressure, which could drive its price down.
Increasing selling pressure threatens to push XLM below the critical support level of US$0.42. In this case, the token's value could drop towards US$0.39 if profit-taking continues.
XLM Price Analysis. XLM Price Analysis | Source: TradingView
Conversely, if bullish momentum strengthens, the token could break through resistance at US$0.4689. This opens up opportunities for a rally towards US$0.5206.
