Stellar (XLM) is experiencing significant volatility and a clear decline as investor sentiment weakens. Despite attempts at recovery, this altcoin still faces many challenges in returning to previous peak levels. The market remains gloomy, with most investors maintaining a cautious attitude, causing prices to remain under downward pressure.
Stellar investors are losing confidence.
The Chaikin Money Flow (CMF) indicator has consistently remained below the 0 threshold since the beginning of the month, indicating that money is flowing out of XLM strongly. This reflects the uncertainty among investors, limiting new capital inflows into the asset.
As the CMF remains in negative territory, it indicates that confidence in XLM's short-term outlook is diminishing. Many investors tend to withdraw capital, leading to prolonged pessimism in the market.
The relative strength index (RSI) of XLM has fallen below the neutral threshold, further reinforcing the bearish outlook. As an important indicator reflecting momentum and market conditions, the current position of the RSI indicates that XLM is clearly weakening.
When the RSI continues to trend downward, the market picture for XLM remains bleak, confirming that this altcoin is under strong selling pressure and the possibility of recovery is still far away.
XLM shows no signs of recovery after the downtrend.
Currently, the price of XLM is fluctuating around $0.40, and traders are trying to maintain this level as a support point. However, in the context of a weak market and the aforementioned technical indicators, the likelihood of this altcoin recovering in the short term is quite low. The fact that the Parabolic SAR indicator is above the price candles further confirms that the prevailing trend is bearish, making it difficult for XLM to reverse.
The next important support level is $0.35 – a price level recorded over a month ago. If the downtrend continues, the price could fall to this level, triggering additional selling pressure from investors. This would reinforce the pessimistic sentiment in the market and prolong the period of weak prices.
However, if XLM rebounds from the support level of $0.40, the price could recover to around $0.42, even reaching $0.45, provided that investors change their sentiment and return to the market. A successful recovery would break the current bearish outlook and open up opportunities for this altcoin to rise again.
